Ardoin Enterprises has to determine its cost of capital using the following information: The firm has $40,000,000 in corporate bonds currently selling at 97.5. The bonds mature in 9 years and have an annual coupon rate of 6.6% paid semiannually. The firm faces a 34% tax rate and has 1,500,000 shares of preferred stock that pays a dividend of $0.80 per year and currently sells for $9.00 per share.
Common stock selling for $3.50 per share has just paid a dividend of $0.30 and is expected to grow by 4% forever. The firm has a beta of 1.4 and the risk free rate on treasury securities is 2.5%. The average return on the S&P500 is 12.54%.
Calculate the cost of capital for the firm. Ardoin Enterprises has 25 million common shares outstanding.

After creating an organizational strategy based on porter’s models, a company can a) create process models. b) calculate inputs and outputs. c) examine market structure. d) develop information systems. only answer if you're positive! you!

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer