1. Other things equal, which of the following will decrease the WACC of a firm that has both debt and equity in its capital structure?
An increase in the expected market return
An increase in the yield on preferred stock
An increase in the stock’s beta
An increase in the tax rate
2. What is the projected profitability of the urgent care center for the entire year if volume continues at its current level?
3. Construct an Income statement for the company ABC from the following information:
Cost of goods sold = $12,647
Depreciation = $1,069
Interest expense = $178
Sales Revenue = $27,121
Selling, general and administrative cost= $8,352
Taxable Income =$4,875
Taxes at 31.92% of Taxable income.