Splish Company took a physical inventory on December 31 and determined that goods costing $217,700 were on hand. Not included in the physical count were $26,450 of goods purchased from Pelzer Corporation, f. o.b. shipping point, and $23,320 of goods sold to Alvarez Company for $29,820, f. o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Splish report as its December 31 inventory

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.