Narcisco publications established the following standard price and costs for a hardcover picture book that the company produces. standard price and variable costs sales price $ 90.00 materials cost 18.00 labor cost 9.00 overhead cost 12.60 selling, general, and administrative costs 14.40 planned fixed costs manufacturing overhead $ 270,000 selling, general, and administrative 108,000 narcisco planned to make and sell 30,000 copies of the book. requireda. - d. prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 29,000 and 31,000 units. determine the sales and variable cost volume variances, assuming volume is actually 31,000 units. indicate whether the variances are favorable (f) or unfavorable (u). (select "none" if there is no effect (i. e., zero

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