Alculate the WACC for the following company. The company has a capital structure that consists of 50% debt and 50% common stock the company’s CFO has obtained the following information: The yield to maturity on the company’s bonds is 7% The coupon rate on the company’s bonds is 5% The next expected dividend is expected to be $7.00 The dividend is expected to grow at a constant rate of 5% per year The stock price is currently $75 per share The tax rate is 35% What is the WACC?

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate

Companies under market structures are independent