You are planning on selling a new product that has a variable cost of $62 a unit. Your monthly required return is 1.8 percent. To help boost your sales, you plan to offer new customers one month to pay. You expect that of 100 customers who purchase the product today, all will take advantage of the credit offer. However, 12 of them will not pay one month from now, while 88 will be so happy with the product that they, and their offspring, will purchase replacement products and pay for them on a monthly credit basis forever. The selling price and variable cost will not change and the variable cost will be incurred at the time of sale.
Required: What is the minimum price the firm could charge to break-even on an Net Present Value basis?

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent