Long Term Debt 16,869,000

Short Term Debt/Current Portion of Long Term Debt 328,000

Cash and Cash Equivalents 1,723,000

Total Liabilities 30,624,000

Total Equity 9,322,000

Total Current Assets 15,302,000

Average no. shares outstanding= 1,267,881

Current stock price= $114.33 per share.

1. Calculate d/e ratio, re, and wacc in a market without tax and a market with tax. (Assume Ru=14.8% rd=2.1% and corporate tax rate=36.50%)

(Hint: the market value of debt is the sum of Long Term Debt and Short Term Debt/Current Portion of Long Term Debt subtracting Cash and Cash Equivalents from the balance sheet. Use market value of equity.)