Leroy Corporation is a $300 million business active in the production of widgets. Target weights of 20% debt and 80% equity in the capital structure have been achieved. The before-tax cost of debt for Leroy Corporation is estimated to equal the yield to maturity on its most recent issue of their bonds which is equal to 4%. Interest payments to be made on Leroy Corporation debt qualifies as a tax deductible expense while dividend payments made to common stockholders do not qualify for a corporate tax deduction. The marginal corporate tax rate for Leroy Corporation is estimated to equal 30%. At present, any flotation costs associated with any possible future sales of equity or debt capital are to be ignored in the cost of capital calculations. The risk free rate of interest is estimated to equal 3%. Beta for Leroy Corporation common stock is estimated to equal 1.2.

Required:
Estimate the market portfolio.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?