Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rate is 35%. Debt: 8,000 6.5% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106% of par. The bonds make semi-annual payments Common Stock: 310,000 shares outstanding, selling for $57 per share; the beta is 1.05 Preferred Stock: 15,000 shares outstanding with a dividend of $4 each, currently selling for $72 per share 7% market risk premium and 4.5% risk free rate.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Do a swot analysis for the business idea you chose in question 2 above. describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea.

Describe a real or made-up but possible example of a situation where an employee faces a conflict of interest. explain at least two things the company could do to make sure the employee won't be tempted into unethical behavior by that conflict of interest. (3.0 points)