An accountant is modeling the annual tax expenditures, EEE, in thousands of dollars ttt years after January 1^{\text{st}}1 st 1, start superscript, start text, s, t, end text, end superscript, 200020002000 for a small business using two different models. Both of the accountant's models have tax expenditures of \$5000$5000dollar sign, 5000 on January 1^{\text{st}}1 st 1, start superscript, start text, s, t, end text, end superscript, 200020002000. Model 111 has tax expenditures which increase by \$4000$4000dollar sign, 4000 each year. Model 222 has tax expenditures which increase by a factor of aaa every 555 years. If the models have the same value on January 1^{\text{st}}1 st 1, start superscript, start text, s, t, end text, end superscript, 201020102010, what is the value of aaa

You want to paint your room yellow, so you get some samples at the paint store. when you hold the sample against your white wall, it looks different from the way it looks against the green curtain. a psychologist would attribute this to perceptual constancy. visual paradoxes. contrast effects. threshold differences.

Abc company currently pays a dividend of $2.15 per share, d0=2.15. it is estimated that the company’s dividend will grow at a rate of 30 percent per year for the next 3 years, then the dividend will grow at a constant rate of 7 percent thereafter. the market rate of return is 9 percent. what would you estimate is the stock’s current price?

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