Question: 1.Alpha Industries is considering a project with an initial cost of $8.8 million. The project will produce cash inflows of $1.68 million per year for

1.Alpha Industries is considering a project with an initial cost of $8.8 million. The project will produce cash inflows of $1.68 million per year for 8 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.85 percent and a cost of equity of 11.43 percent. The debt-equity ratio is .68 and the tax rate is 40 percent. What is the net present value of the project?

2.Skolits Corp. has a cost of equity of 10.6 percent and an aftertax cost of debt of4.08 percent. The company's balance sheet lists long-term debt of $280,000 and equity of $540,000. The company's bonds sell for 94.3 percent of par and market-to-book ratio is 2.44 times. If the company's tax rate is 39 percent, what is the WACC?

3.If a borrower had an interest rate of 5 1/4 percent and refinanced, lowering the interest rate by 3/8 percent, what is the amount of interest after refinancing?

4.If a product is growing at 5% and the market for which the product corresponds is growing at 12%, what is the formula to calculate what the actual growth is of that product?

5.If $6,000 is invested at 6% per year compounded monthly, the future value S at any time t (in months) is given by S = 6,000(1.005)t.

What is the amount after one year?

How long before the investment doubles?

6.isabel deposits 600 into an account that pays a rate of 4% per year how much interst will i get paid in the first 2 years

7.Use the future use the future value formula to find the indicated value.

Fv=2'000 i=0.05 pmt=200 n=?

8.Jenelle invested $14000 in two mutual funds. Fund A earned 6% profit during the first year, while Fund B suffered a 3.5% loss. If she received a total of $441 profit, how much had she invested in each mutual fund?

9.Dan pays $5.005.00

to play a game in which he flips two coins. If both coins land onheads, he wins

$14.0014.00.

If the coins land any otherway, he will lose the

$5.005.00

he paid to play the game. What is the expected value to Charley for thisgame?

10.What possible reasons could make arbitrage impossible between some markets?

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