The gallagher co. has a target capital structure of 65% debt and the remainder common equity.  gallagher’s cost of debt is 8.5%, its tax rate is 35%, its most recent dividend was $2.00 and that dividend has been growing at 3.5% annually and is expected to continue that growth.  the current price of gallagher stock is $52.50 per share.  flotation costs on new equity are 8.5% and gallagher has retained earnings of $3.5 million.  what is the wacc if gallagher's total capital expenditure is expected to be $8.5 million?

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above