MINICASE Bernice Mountaindog was glad to be back at Sea Shore Salt. cost of capital to other managers. The memo came as a surprise to Employees were treated well. When she had asked a year ago for a Bernice, so she stayed late to prepare for the questions that would leave of absence to complete her degree in finance, top manage surely come the next day ment promptly agreed. When she returned with an honors degree. Bernice first examined Sea Shore Salt's most recent balance she was promoted from administrative assistant (she had been sec sheet, summarized in Table 13.6. Then she jotted down the follow- retary to Joe-Bob Brinepool, the president) to treasury analyst. ng additional points Bernice thought the company's prospects were good. Sure table salt was a mature business, but Sea Shore Salt had grown The company's bank charged interest at current market rates, ess well known competitors. The and the long-term debt had just been issued. Book and market steadil company's brand name was an important advantage, despite the difficult values could not differ by y most customers had in pronouncing it rapidly Bernice started work on January 2, 2016. The first But the preferred stock had been issued 35 years ago, when 2 weeks went nterest rates were much lower. The preferred stock, originally was noiy trading for per share, only $70 per share 13.2) assigned her to explain Sea Shore Salt's weighted-average