Cartwright communications is considering making a change to its capital structure to reduce its cost of capital and increase firm value. right now, cartwright has a capital structure that consists of 20% debt and 80% equity, based on market values. (its d/s ratio is 0.25.) the risk-free rate is 6% and the market risk premium, rm − rrf, is 5%. currently the company's cost of equity, which is based on the capm, is 12% and its tax rate is 40%. what would be cartwright's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity?
a. 13.00%
b. 13.64%
c. 14.35%
d. 14.72%
e. 15.60%

Which of the following statements is not correct? 1) trade allows for specialization. 2) trade has the potential to benefit all nations. 3) trade allows nations to consume outside of their production possibilities curves. 4) absolute advantage is the driving force of specialization.

The new york stock exchange is an example of what type of stock market?

You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?