Consider a perpetuity with the first cash flow at the end of year 1. If the invested funds of the perpetuity could earn 19% per year and the perpetuity paid $572 per year, what is the present value of the perpetuity? (round to the nearest dollar)

A firm is considering a project and plan to obtain a target capital structure with $49,868 of debt at a before-tax cost of 9.6%, $18,686 of preferred stock at a cost of 10.7% and $54,147 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the firms weight on debt capital? (your answer should be in percentages so 10% would be entered as 10)

A firm is considering a new project that will require an initial outlay of $20 million. It has a target capital structure of 60% debt, 10% preferred stock, and 30% common equity. The firm has non-callable bonds that mature in five years with a face value of $1,000, an annual coupon rate of 8%, and a market price of $1080.64. The yield on the companys current bonds is a good approximation of the yield on any new bonds that are issued. The cost of preferred stock for the firm is 12.5% and the cost of common equity is 14%. The firm has a marginal tax rate of 30%. Determine the firms WACC for this project

		8.08
		9.42
		10.56
		8.00
		9.10