Vollmer manufacturing makes three components for sale to refrigeration companies. the components are processed on two machines: a shaper and a grinder. the times (in minutes) required on each machine are as follows: machine component shaper grinder 1 6 4 2 4 5 3 4 2 the shaper is available for 120 hours, and the grinder for 110 hours. no more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. in fact, the company already has orders for 600 units of component 1 that must be satisfied. the profit contributions for components 1, 2, and 3 are $8, $6, and $9, respectively. a. write the lp model to maximize profit and solve it to find the optimal number of components and total profit. b. what are the objective function coefficient ranges for the three components? interpret these ranges for company management. c. what are the right hand side ranges for the shaper constraint? interpret the shadow price for this constraint and the right hand side for this constraintd. if more grinder time could be made available, how much would it be worth? e. if more units of component 3 can be produced, how much would an additional unit add to profit?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. true or false