Smalls Electric Company is considering investing in new powe…

Smalls Electric Company is considering investing in new power-switching equipment.  The net present worth and probabilities for three probable outcomes are : Outcome: A B C Net PW 5.3K 4.0K 8.6K Probability of outcome 0.50 0.30 0.20   What is the risk, σPW, associated with the proposal?

ABC Manufacturing Inc. has the following capital sources ava…

ABC Manufacturing Inc. has the following capital sources available: Capital Source Amount Interest/Dividend Bonds $50M 8% Unsecured loans 20M 12% Secured loans 40M 9% Stocks 200M 5% Retained earnings 150M 15%   What is the marginal cost of capital for ABC Inc.?