QUESTION 1 (25 marks) Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has an annual salary of $157,000. He has asked you whether he will have a tax payable or tax refund for 2019 (ignore provincial taxes). Other information he shared with you is as follows: • His employer paid for the $300/month underground parking spot at the company’s head office • His employer gave him a $3,000 flat-screen tv as an award for his 10-year work anniversary. • His employer gave him a $25 t-shirt for him to wear on the annual Terry Fox Run • His employer paid $2,200 in premiums for him towards his membership in the company-sponsored group disability plan • He earned $6,500 in interest on his investments • Manuel made an RRSP contribution of $12,000 and paid professional dues of $1,800. • Manuel and his spouse did not incur any childcare expenses during the year. • He is required by his employer to use his own automo

Consider the following scenarios. use what you have learned to decide if the goods and services being provided are individual, public, or merit goods. for each case, state what kind of good has been described and explain your answer using the definitions of individual, public, and merit goods. (6 points each) 1. from your window, you can see a city block that's on fire. you watch city firefighters rescue people and battle the flames to save the buildings. 2. while visiting relatives, you learn that your cousins attend a nearby elementary school that is supported financially by local property tax revenue. 3. you see a squadron of military jets flying overhead. 4. you find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. she tells you that she works for a team that is producing a communications satellite. 5. your class visits a local jail run by a private, profit-making company that detains county criminals and is paid with tax revenue.

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

An economic theory that calls for workers to take control of factories is .