I was having trouble figuring out some of these problems. Question #1 and #2, I am trying to figure out the caculations for these two. All the info is provided below.

Questions

1.We would like an estimate of our current market price per share for our common shares? For this, use the following assumptions (6marks):

The current date is January1, 20X3.

At the end of 20X3,Bio-Fuel Generation Inc. (BFG)will pay a dividend of $0.75, which increases by 8% in 20X4 and 6% in 20X5.

Thereafter, the constant growth rate will be 3%.

2.What is the company's weighted average cost of capital using its current capital structure? The current yield on the long-term debt is 7.5%. (3marks)

4.As you know, we are looking to commercialize the production of biodiesel from algae. We require $2,000,000 for capital investment in the building and equipment. We have two proposals for financing this project:either by issuing preferred shares or by issuing a loan. Describe the implications on current and future cash flows and net earnings for each option. (6.5marks)

5.Using the CPA Way, describe qualitative factors that should be considered for each of these proposals and make a recommendation as to which proposal should be accepted.

6. Michael wants to understand how the project will be analyzed. He knows there are three methods that can be used: payback period, net present value, and internal rate of return. He would like to understand their similarities and differences and receive a conclusion on which method would be appropriate to analyze the algae production project.