1. Justice, Inc. has a capital structure which is based on 35 percent debt, and 65 percent common stock. The flotation costs are 11 percent for common stock, and 7 percent for debt. What is the weighted average flotation cost?
2. Differentiate among Capital Allocation Line (CAL), Capital Market Line (CML), and Security Market Line (SML).
3. Based upon your analysis, should "Bullock Gold Mining" accept or reject the project? Why or Why Not?