Prof. Smith wants to study the characteristics of shopliftin…

Prof. Smith wants to study the characteristics of shoplifting. She gets permission from a grocery store owner to follow randomly-selected subjects through the store using hidden video cameras. She then takes note of such things as the length of time they are in the store, their socio-demographic characteristics (e.g., sex, race, approximate age), whether they are alone or in a group, etc. She also takes note of whether they try to conceal any items and exit the store without paying. What ethical principle is she potentially violating in this study?

Garner Inc. is considering a project that has the following…

Garner Inc. is considering a project that has the following cash flow data.  What is the project’s payback?   Year                                  0                    1                    2                    3      Cash flows                     -$250             $100              $150              $100

To estimate the company’s WACC, Ditto Inc. recently hired yo…

To estimate the company’s WACC, Ditto Inc. recently hired you as a consultant.  You have obtained the following information.  (1) The firm’s bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,000.00. (2) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock’s beta is 1.0.  (3) The company’s tax rate is 40%.  (4) The target capital structure consists of 35% debt and the 65% common equity.  The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares.  What is its WACC?