George buys 2.5 pounds of hamburger and 2 pounds of chicken per week when hamburger costs $4 per pound and chicken costs $5 per pound, and this bundle of goods costs him $20 per week. what will happen if the price of hamburger drops to $2 per pound and the price of chicken increases to $7.50 per pound? [note that george's original bundle of hamburger and chicken still costs $20 after these price changes.] a. george buys less hamburger and more chicken, and he is better off. b. george buys more hamburger and less chicken, and he is better off. c. george buys more hamburger and less chicken, and he is just as well off as before. d. george buys more hamburger and less chicken, and he is worse off. e george buys the same amounts of hamburger and chicken as before, and he is just as well off as before. f. george buys less hamburger and more chicken, and he is worse off.

Allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity. calculate the cost of new stock using the dividend growth approach. what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics. each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings. equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

%of the world's population controls approximately % of the world's finances (the sum of gross domestic products)" quizlket