A Clara Bat Final - 100604427 e - Review Layout A A A A-D References Mailings A E A - FETE Search View 1 - Help Grammarly ABCD AthccDc AaBbc Aabbel AaB Aabbet Normal No Space Heading 1 Heading 2 The Subtitle Die * - O Question Mach Short An A Should the firm purchase the new equipment Justify your wer based on what you have learned in the course that you will need to make an additional calculation marks) Question 3: Cai Corp. Deeds to purchase plastic moulding machines to meet the demand for its product. The cont of the g e nt is $1.434,000. It is estimated that the firm will increase after tax cash flow (ATCF) by $266,941 annually for the next 6 years. The firm is fianced with 40% debt and 60% equity, both based on current market values, though the farm has announced that it wants to quickly change its debt to equity matita 1.5. The firm's beta is 131, the risk free rate is 2.65% and the expected market return is 5.99% C a nk, Corp's semi-annual bonds have 12.10% coups, 16 years to maturity, and a quoted price of 104 472. Assume the firm's tax rate is 34%. The firm's last 5 dividends (the last in the list is DO) are 1.23.1.23. 14. 1.90 and 1.98. T CT market price is $1470.67 Question 3. Short Answer: In calculating the firm's WACC, you had to make a couple of yament calls. What were they and briefly discuss why you made the decisives you did. (10 marks)