Whole milk is one of the joint products in a joint manufacturing process. Management is considering whether to sell the whole milk at the split-off point or to process it further into cheese. The following data have been gathered:
I. Selling price of the whole milk
II. Variable cost of processing the whole milk into cheese
III. The avoidable fixed costs of processing the whole milk into cheese
IV. The selling price of cheese
V. The joint cost of the process from which the whole milk is produced
Which of the above items are relevant in a decision of whether to sell the whole milk as is or process it further into cheese?
a. I, II, and IV
b. I, II, III, and IV
c. I, II, III, and V
d. I, III, and V

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using:

Only the united states has embassies. true or false