Two companies Toxic Wastes Management and Sludge Industries both pollute a nearby lake Each firm dumps 1,000 gallons of goo every day into the lake. As a consequence the lake has lost its clarity and the fish are dying. Local residents want to see the lake restored. Toxic Waste's production process depends heavily on being able to dump the goo into the lake. It would cost the Toxic Waste $10 per gallon to clean up the goo it creates. Sludge Industries can clean up its goo at a cost of $2 per gallon. a. If the local government cuts the legal goo emissions in half for each firm what are the costs to each firm to comply with the law? What is the total cost of both firms in meeting the goo emissions standard? b. Another way of cutting goo emissions in half is to assign each firm tradable pollution permits that allow 500 gallons of goo to be dumped into the lake every day. Will each firm still dump 500 gallons of goo? What are the costs to each firm under tradable pollution permits? What is the total cost of both firms under the pollution permit plan?

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities.required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.

How many months does the federal budget usually take to prepare