ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is all-equity financed with $520,000 in stock. XYZ uses both stock and perpetual debt; its stock is worth $280,000 and the interest rate on its debt is 8%. Both firms expect EBIT to be $61,500. The cost of equity for ABC is _____, and for XYZ it is ______. Ignore taxes, depreciation, capital expenditures, and changes in net working capital.
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EZ Co-op Inc. sells Fill-Up cattle feed to ranchers. Gina bu…
EZ Co-op Inc. sells Fill-Up cattle feed to ranchers. Gina buys and feeds Fill-Up to her herd. The feed is poisoned. Gina sues EZ for product liability based on negligence. To win, Gina must show
The area of a circle is increasing at a rate of 3 square inc…
The area of a circle is increasing at a rate of 3 square inches per minute. How fast is the radius of the circle increasing when the radius is 2 in? The area of a circle is given by
A vital innovation made possible by agriculture was
A vital innovation made possible by agriculture was
DIY-Haul, Inc., makes, sells, and leases hauling equipment f…
DIY-Haul, Inc., makes, sells, and leases hauling equipment for consumer use. Ed files a product liability suit against DIY-Haul, alleging a design defect. In deciding whether to hold the maker liable, the court may consider
Felice is injured when a can of Ground-Up explodes into flam…
Felice is injured when a can of Ground-Up explodes into flames. Herbicides Inc. manufactured the Ground-Up. Under product liability laws, Felice’s options include
Agricultural life was much _________ than foraging.
Agricultural life was much _________ than foraging.
Australian Aborigines were unsophisticated, living in harmon…
Australian Aborigines were unsophisticated, living in harmony with the land and not
Egypt never had city-states.
Egypt never had city-states.
A product will be considered defective when the omission of…
A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe.