Farac Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 4,000 units 5,000 units Direct materials $ 208,800 $ 261,000 Direct labor $ 119,200 $ 149,000 Manufacturing overhead $ 319,200 $ 329,500 The best estimate of the total cost to manufacture 4,300 units is closest to

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.