Flint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. The Supplies account shows a balance of $940, but a count of supplies reveals only $410 on hand. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $620 in Insurance expense. A review of insurance policies reveals that $225 of insurance is unexpired. Flint Hills employees work Monday through Friday, and salaries of $4,400 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. On December 31, 2021, Flint Hills received a utility bill for December electricity usage of $390 that will be paid in early January of 2022. Required: Prepare adjusting journal entries, as needed, for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. calculate the required rate of return on a security with a beta of 1.92. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. if the security is expected to return 15%, is it overpriced or underpriced?

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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