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QUESTIONS Collins Inc. is iuvestigating whether to develop a new preduet In eval wheder to go a ad with the project whach of dor followwg

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QUESTIONS Collins Inc. is iuvestigating whether to develop a new preduet In eval wheder to go a ad with the project whach of dor followwg inemas slould te explit ely wesea when b The company has spent and expensed for tax puposes nallbon dealer has offered to bey equipouera tesearch ay benefa wowetsdut in the furure. s en research felated to new detergent These cannot be recovered de c The new product will cut into sales of some of the firm's other products d If the project is accepted. the mast awest millson us capital Hewever, all of dese fads wstm be recovered at de ead of proyects bie G e The company will produce the new product in a vacant boulding that was used to prodace another product umil last year The balding could be seld leased to another company wed fatwe produce another of the firm's products QUESTION 6 The Lincoln Company sold a $1.000 par value, noncallable bond several years ago that now has 20 years to matirity and a700% annual coupon that is vaid semiamually. The bond curenty seus fos $925 and the company's tax rate is 40% What is the component cost of debt for use in the wAcc caletdatace? a 446% b 4.28% G c 5.03% d 4.83% e 4.65% points save ESTION 7 amalan It expected to pay a S2.50 dividend at year end CD s2.50). and the davidend ted to grow at a constant rate of S 50% year n Enterprises stock trades for $52.50 per share a rch right here

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