The business of renting specialized construction equipment is highly competitive. In 2010, your company, Franklin Property Group Co., purchased Roger's Rental Co., a regional competitor. Two key employees of Roger's learned of the purchase and decided to resign and form their own company, B&S Rentals, Inc. In an effort to grow their new business, B&S began contacting your largest construction clients. Part of their solicitation of your clients included advising them that the low prices they could offer would far outweigh any liquidated damages that they would have to pay by terminating their current contracts. Over the last three years, you have lost five of your top ten construction clients to B&S. What should you do, and what is the likely outcome?

What happens when a bank is required to hold more money in reserve?

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

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