Terry wade, the new controller of hellickson company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. his findings are as follows.

date

accumulated
depreciation

useful life
in years

salvage value

type of asset

acquired

cost

1/1/15

old

proposed

old

proposed

building 1/1/09 $806,700 $115,410 40 50 $37,300 $50,210
warehouse 1/1/10 114,000 21,940 25 20 4,300 19,610
all assets are depreciated by the straight-line method. hellickson company uses a calendar year in preparing annual financial statements. after discussion, management has agreed to accept terry’s proposed changes.

1.)compute the revised annual depreciation on each asset in 2015. ( building and warehouse)

2.)prepare the entry to record depreciation on the building in 2015. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)

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