Travis & sons has a capital structure which is based on 40 percent debt, 5 percent preferred stock, and 55 percent common stock. the pre-tax cost of debt is 7.5 percent, the cost of preferred is 9 percent, and the cost of common stock is 13 percent. the company's tax rate is 39 percent. the company is considering a project that is equally as risky as the overall firm. this project has initial costs of $325,000 and annual cash inflows of $87,000, $279,000, and $116,000 over the next three years, respectively. what is the projected net present value of this project?

Greenway industries is a major multinational conglomerate. its business units compete in a range of industries, including home appliances, pharmaceuticals, commercial real estate, and plastics manufacturing. although its largest business unit, which produces kitchen appliances, is among the most profitable in the industry, it generates only 35 percent of the company's revenues. which of the following is most likely true of greenway's stock price? a. it is valued at less than the sum of its individual business units. b. it is valued at greater than the sum of individual business units. c. it is valued at the exact sum of individual business units. d. it is consistently lower than the industry average. it is valued at greater than the sum of individual business units.