Aguilar company is a priceminus−taker and uses target pricing. refer to the following information: production volume 601 comma 000601,000 units per year market price $ 30$30 per unit desired operating income 1616% of total assets total assets $ 13 comma 700 comma 000$13,700,000 variable cost per unit $ 19$19 per unit fixed cost per year $ 5 comma 400 comma 000$5,400,000 per year with the current cost structure, aguilar cannot achieve its profit goals. it will have to reduce either the fixed costs or the variable costs. assuming that fixed costs cannot be reduced, what are the target variable costs per unit per year? assume all units produced are sold. (round your answer to the nearest cent.)

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

Why should managers invest any excess cash

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.