2 decimal places

Enter A Points as marked - 10 QUESTIONS TOTAL Below Q1) Suppose a firm has 24.30 million shares of common stock outstanding at a price of $17.38 per share. The firm also has 112000.00 bonds outstanding with a current price of $1, 142.00. The outstanding bonds have yield to maturity 6.12%. The firm's common stock beta is 0.721 and the corporate tax rate is 36.00%. The expected market return is 12.13% and the T-bill rate is 4.87%. Compute the following: a) Weight of Equity of the firm (2 points) b) Weight of Debt of the firm (2 points) c) Cost of Equity of the firm (2 points) d) After Tax Cost of Debt of the firm (2 points) e) WACC for the Firm (2 points) Q2) A firm has a WACC of 10.65% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63.36. The additional cash flows for project A are: year 1 = $17.73, year 2 = $35.58, year 3 = $45.67. Project B has an initial investment of $70.96. The cash flows for project B are: year 1 = $59.51, year 2 = $44.23, year 3 = $38.80. Calculate the Following: a) Payback Period for Project A: (2 points) b) Payback Period for Project B: (2 points) c) NPV for Project A: (2 points) d) NPV for Project B: (2 points)