On April 1, Larkspur, Inc. began operations. The following transactions were completed during the month.

(1) Issued common stock for $29,300 cash.
(2) Obtained a bank loan for $8,500 by issuing a note payable.
(3) Paid $13,400 cash to buy equipment.
(4) Paid $1,500 cash for April office rent.
(5) Paid $1,750 for supplies.
(6) Purchased $730 of advertising in the Daily Herald, on account.
(7) Performed services for $22,000: cash of $2,440 was received from customers, and the balance of $19,560 was billed to customers on account.
(8) Paid $490 cash dividend to stockholders.
(9) Paid the utility bill for the month, $2,440.
(10) Paid Daily Herald the amount due in transaction (6).
(11) Paid $50 of interest on the bank loan obtained in transaction (2).
(12) Paid employees’ salaries, $7,810.
(13) Received $14,640 cash from customers billed in transaction (7).
(14) Paid income tax, $1,830.

Prepare the journal entries.

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

If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?

Jeanie had always been interested in how individuals and businesses effectively allocate their resources in order to accomplish personal and organizational goals. that’s why she majored in economics and took on an entry-level position at an accounting firm. she is very interested in further advancing her career by looking into a specialization that builds upon her academic background, and her interest in deepening her understanding of how companies adjust their operating results to incorporate the economic impacts of their practices on internal and external stakeholders. which specialization could jeanie follow to get the best of both worlds? jeanie should chose to get the best of both worlds.