You have the following information about Burgundy Basins, a sink manufacturer. Equity shares outstanding 20 million
Stock price per share $37
Yield to maturity on debt 5.5%
Book value of interest-bearing debt $340 million
Coupon interest rate on debt 4.2%
Market value of debt $235 million
Book value of equity $390 million
Cost of equity capital 11.4%
Tax rate 35%

Burgundy is contemplating what for the company is an average-risk investment costing $34 million and promising an annual ATCF of $4.7 million in perpetuity.

Required:
a. What is the internal rate of return on the investment? (hint: use the equation for a perpetuity)
b. What is Burgundy’s WACC?
c. If undertaken, would you expect this investment to benefit shareholders? Why and why not?

Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?

Identifying transactions national park tours co. is a travel agency. the nine transactions recorded by national park tours during may 2019, its first month of operations, are indicated in the following t accounts: cash (1) 75,000 (2) 900 (7) 8,150 (3) 1,600 (4) 6,280 (6) 2,700 (9) 2,500 accounts receivable (5) 12,300 (7) 8,150 supplies (2) 900 (8) 660 equipment (3) 8,000 accounts payable (6) 2,700 (3) 6,400 beth worley, capital (1) 75,000 beth worley, drawing (9) 2,500 fees earned (5) 12,300 operating expenses (4) 6,280 (8) 660 indicate for each debit and each credit (a) whether an asset, liability, owner's equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased account debited account credited transaction type effect type effect (1) (2) (3) (4) (5) (6) (7) (8) (9)

In allentown, pennsylvania, in the summer of 2014, the average price of a gallon of gasoline was $3.68long dasha 22-cent increase from the year before. many consumers were upset by the increase. one was quoted in a local newspaper as saying, "it's crazy. the government should step in." source: sam kennedy, "valley feeling pain at the pump," (allentown, pa) morning call, june 21, 2014. suppose the government had stepped in and imposed a price ceiling equal to old price of $3.46 per gallon. a. using the line drawing tool, draw and label the price ceiling. carefully follow the instructions above, and only draw the required object.