Question: 3. (9 points) Suppose that TipsNToes, Inc's capital structure features 55 percent common equity, 45 percent debt, and its cost of equity is 14 percent,

3. (9 points) Suppose that TipsNToes, Inc's capital structure features 55 percent common equity, 45 percent debt, and its cost of equity is 14 percent, while its before-tax cost of debt is 10 percent. It has no preferred stock. If the appropriate tax rate is 20%, what will be TipsNToes's after-tax WACC? 4. (20 points) Consider the following cash ows: Year 0 1 2 3 4 5 6 Cash Flow 4512.000 $2,000 $4.800 $3.600 $2.800 $2,800 $2,000 A. Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should It be accepted or rejected? El. Discounted Payback. Calculate the discounted payback using a discount rate of 10%. Should it be accepted or rejected? C. IRR. Calculate the IRR for this project. The company's required rate of return is 10%. Should it be accepted or rejected? D. NW. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? E. PI. Calculate the Profitability Index (PI) for this project. Should It be accepted or rejected

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