Your company is evaluating a new factory that will cost $23 million to build. Your target debt-equity ratio is 1.7. The flotation cost for new equity is 9% and the flotation cost for new debt is 5%. The company is planning to use retained earnings for 80% of the equity financing.
What are the weighted average flotation costs as a fraction of the amount invested?
What are the flotation costs (in $ million)?

The speech recognition software used by Mr. Smith's company can transcribe 130 words per minute. He will purchase a new product only if it can be shown to increase the speed. 41 tests were ran on the new software resulting in a mean of 135 and standard deviation of 4.5 words per minute with alpha= .01, Should he purchase the new software?

Please explain and show all work:

A double-blind study was performed on consumers comparing a new formulation of a diet soft drink with the original formulation. Of 100 subjects, 57 preferred the new formulation, 38 preferred to original formulation, and 5 were undecided or could not tell the difference. Use the sign test to decide whether consumers prefer the new formulation at the 5% level.

Discuss your experiences with links opening new web pages in the same window and tab, and in a new window or tab. Which way do you prefer? Do your preferences depend on the situation in which you are following a link? What do you consider to be the disadvantages of opening target web pages in new windows or tabs?

Please explain your reasoning.

Suppose the stock of Host Hotels​ & Resorts is currently trading for $ 15 per share.

a. If Host issued a 20 % stock​ dividend, what will its new share price​ be?

b. If Host does a 3​ : 2 stock​ split, what will its new share price​ be?

c. If Host does a 1​ : 3 reverse​ split, what will its new share price​ be?

1. Name 3 new tax law changes as it relates to Individual Tax Payers?
2. Name 3 new tax law changes as it relates to Corporate Tax Payers?
3. What is the new “Pass thru” tax deduction? Which entities does it apply to?
4. Do you think that by reducing the corporate tax rate it will help or hurt the United States?

The 2019 demand and supply for Montreal cannabis are:

Demand: P=100-x

Supply: P=10+x

As a result of a successful trade mission to New Zealand, it has agreed to buy Montreal cannabis. Their demand is:

P=80-2x

What are the economic effects of this trade? Show diagram.

Original Price and output? New price and output? Consumption by Montreal? Consumption by New Zealand?

At year-end 2018, Wallace Landscaping’s total assets were $1.73 million, and its accounts payable were $400,000. Sales, which in 2018 were $2.1 million, are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $540,000 in 2018, and retained earnings were $370,000. Wallace has arranged to sell $55,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 3%, and 50% of earnings will be paid out as dividends.

How much new long-term debt financing will be needed in 2019? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Round your answer to the nearest dollar.

The beta of the equity of CDE Company is 1.67 and CDE has a debt-to-equity ratio of 0.67 calculated at market values. The debt is risk-free and perpetual. CDE generates annual EBIT of $100 and has 100 shares of common stock outstanding. The expected return on the market portfolio is 15% and the risk-free interest rate is 5%. The corporate tax rate is 30%. Assume that personal taxes and bankruptcy costs are not relevant.

1. Compute the current market value of CDE Company.

2. CDE is considering an expansion project that will require an initial investment of 133.33. This expansion project is estimated to increase the firm’s annual EBIT by 20%. Determine the new value of CDE if it undertakes the investment and finances it 100% with debt, permanently altering its leverage. Also find the new value of the equity and the new share price.

3. If the investment in part 2 is financed entirely with new equity, how many shares must be issued? What is the new equilibrium price of the shares?

4. Should CDE undertake the project? Hint: Is the new value of the firm greater then the old value of the firm plus the investment?