1. Platonic Entertainment has a new project that will require the company to borrow $3,000,000. Rainbows has made an agreement with three lenders for the needed financing. Fuji Bank will give $1,500,000 and wants 10% interest on the loan. Rainbow Bank will give $1,000,000 and wants 12% Interest on the loan. John' Bank. will give $500,000 and wants 13% interest on the loan. What is the weighted average cost of capital for this $3,000,000 project?

A 10.55%

B. 11.17%

C. 11.66%

D. 12.16%

2. Rainbow Enterprise has 2,400,000 outstanding shares of stock selling for $52 per share. After a 2-for-1 stock split, how many shares of stock are outstanding and what is the change in the firm value (given no new information)?

A. 4,800,000 shares and a change in value of $124,800,000

B. 4,800,000 shares and a change in value of $0.00

C. 1,200,000 shares and a change in value of $124,800,000

D. 1,200,000 shares and a change in value of $0.00

3. A project for You and Me results in additional accounts receivable of $200,000, additional inventory of $120,000, and additional accounts payable of $50,000. What is the additional investment in net working capital?

A $30,000

B. $130,000

C. $270,000

D. none of the above