Pony express creations inc. is a manufacturer of party hats, primarily for the halloween season. oneof their popular products is the elvis wig, complete with sideburns and metallic glasses. the elvis wigis produced in china, so pony express must make a single order well in advance of the upcomingseason. ryan, the owner of pony express, estimates demand for this particular product during thisyear’s selling season as follows: with probability of 0.50, demand will be no more than 20,000 unitswith probability of 0.75, demand will be no more than 35,000 unitswith probability of 0.95, demand will be no more than 45,000 units. the elvis wig retails for $25 each and its wholesale price is $12 each. any leftover can be sold todiscounters at $2.50 each. given the information above, carry out a marginal analysis for ryan if he decides to order 20,000units, or 35,000 units, or 45,000 units. based on your calculation, which of these three order sizeswould bring him the highest expected profit?

The law says your employer is responsible for providing you with a safe and healthy workplace. true or false?

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.