A company has thefollowing cash flows.The company determined their WACC is 10%.Prior to them making a decision interest rates declined so the company thinks that the appropriateWACC is now 9%.How much did this change the WACC?

WACC:

Year: 0 1 2 3 4

Cash FLows: -1,000 350 350 350 350

a.-14.45

b.24.45

c.8.77

d.1.50%

e.31.58

Luna Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

Last year's sales = S₀$200,000

Last year's accounts payable$50,000

Sales growth rate = g40%

Last year's notes payable$15,000

Last year's total assets = A₀^*$160,000

Last year's accruals$20,000

Last year's profit margin = PM20.0%

Target payout ratio25.0%

a.-$6,360

b.-$7,140

c.-$5,400

d.-$6,000

e.-$6,720

You have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays13.6% (APR) interest, compounded quarterly. How much will you have when the CD matures?

a.$5,440.35

b.$7,618.19

c.$6,585.69

d.$7,158.36

e.$6,756.19