Simmons company is a merchandiser with multiple store locations. one of its store managers is considering a shift in her store's product mix in anticipation of a strengthening economy. her store would invest exist800,000 in more expensive merchandise (an increase in its working capital) with the expectation that it would increase annual sales and variable expenses by exist400,000 and exist250,000, respectively for three years. at the end of the three-year period, the store manager believes that the economic surge will subside: therefore, she will release the additional investment in working capital. the store manager's pay raises are largely determined by her store's return on investment (roi), which has exceeded 22% each of the last three years. 1. assuming the company's discount rate is 16%, calculate the net present value of the store manager's investment opportunity. 2. calculate the annual margin, turnover, and return on investment (roi) provided by the store manager's investment opportunity. 3. assuming that the company's minimum required rate of return is 16%, calculate the residual income earned by the store manager's investment opportunity for each of years 1 through 3. 4. do you think the store manager would choose to pursue this investment opportunity? do you think the company would want the store manager to pursue it?

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

Which are the best examples of costs that should be considered when creating a project budget?

Given the following information about the closed economy of brittania, what is the level of investment spending and private savings, and what is the budget balance? assume there are no government transfers. gdp=$1180.00 million =$510.00 million =$380.00 million =$280.00 million