Gh company has $5000 of debt and $20,000 of equity. gh pays 5% interest on all of itsdebt. gh has an equity beta of 2. the market risk premium is 5.5% and the risk free rateof return is 2%. wjk has a 30% marginal tax rate. a. what is wjk’s unlevered beta? b. how much of the expected rate of return on equity is due to asset risk? c. how much of the expected rate of return on equity is due to financial leverage?

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000

What is the relationship between credit and debt?