1.Hannibal Corp. has a cost of equity of 12%, and an after-tax cost of debt of 7%. Using market values, Hannibal's debt is 40% of the value of the firm and its equity is 60% of the value of the firm.What is the weighted average cost of capital?

2.Dexter Corp. can borrow at 9% and is has a 23% marginal tax rate. What is the after-tax cost of debt?

3.Columbia Corporation has a beta of 1.6, the risk-free rate is expected to be 3.5% and the market risk premium is expected to be 5.5%.Using the Capital Asset Pricing Model, what is the after-tax cost of equity?

4.Quincy Corp. expects NOPLAT of $3,800,000 in the first year after the forecast period (or the first year of continuing value period.In addition, it expects growth of 2.5% during the continuing value period, and a weighted average cost of capital of 7%.Please calculate the continuing value.

5.St Louis Corp. expects free cash flows of $2,000,000, $3,200,000, $4,400,000, $5,800,000, $6,500,000, in years 1,2 3,4, 5, respectively.In addition, it has a continuing value of $20,000,000 at the end of year 5 and a cost of capital of 7%.Assuming year end cash flows and that these are all the cash flows for the company, what is the value of this company?

6.Perryville Corp. has an enterprise value of $50,000,000, long term debt of $8,000,000, and an under-funded pension obligation of $6,000,000.If it has 1,800,000 shares outstanding (and no shares under option), please compute the intrinsic value per common share.