Tanten Company has 20% debt and 80% equity. The borrowing rate is 12%. (1) If you own 4% of the stock of Abacus, what is your dollar return if the company has net operating income of $750,000 and the over all capitalization rate , Ko, is 15%? Value of the firm is 500,000
(2) What is the implied required rate of return on equity?
3) What is the market value of stock and the return of stock?
4) What is the market value of debt?

Gyou are in charge of making the work schedule for the next two weeks. typically this is not a difficult task as you work at a routine 8am – 5pm company. however, over the next two weeks you are required to schedule someone to be in the office each saturday. after contemplating this for a few days you make the schedule and assignments. before posting the schedule for everyone you decide that it is a good idea to meet personally with the two people you have scheduled to work the weekend. what do you say to them? what is your desired outcome?