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48. Price Corp. is considering selling to a group of new customers and creating new annual sales of $130,000. 2% will be uncollectible. The collection

48.

Price Corp. is considering selling to a group of new customers and creating new annual sales of $130,000. 2% will be uncollectible. The collection cost on these accounts is 3% of new sales, the cost of producing and selling is 80% of sales and the firm is in the 31% tax bracket. What is the profit on new sales?

49.

Massa Machine Tool expects total sales of $10,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with an inventory cost of $.84 per unit. What is the optimum order size?

76.

Given the following information:

Percent of capital structure:

Debt 25 %
Preferred stock 15
Common equity 60

Additional information:

Bond coupon rate 13%
Bond yield to maturity 11%
Dividend, expected common $ 9.00
Dividend, preferred $ 16.00
Price, common $ 80.00
Price, preferred $ 144.00
Flotation cost, preferred $ 4.20
Growth rate 9%
Corporate tax rate 40%

Weighted Cost
Debt:

Preffered Stock:

Common Equity
Weighted Average cost of Capital

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