matex Corp needs to purchase new plastic moulding machine to meet the demand for it's products. the cost of the equipment is $6616000. it is estimated that the firm will increase a

Question 3: Matex Corp needs to purchase new plastic moulding machines to meet the demand for its product. The cost of the equipment is $6,616,000. It is estimated that the firm will increase after tax cash flow (ATCH) by $1,622,277 annually for the next 5 years. The firm is financed with 40% debt and 60% equty, both based on current market values, though the firm has announced that it wants to quickly change its debt to equity ratio to 15. The firm's beta is 1 73, the risk free rate is 1 47% and the expected market return is 640%. Matex Corp's semi- annual bonds have 12.40% coupons, 12 years to maturity, and a quoted price of 95.741. Assume the firm's tax rate is 34%. The firm's last 5 dividends (the last in the list is DO) are 1 23.1.30. 199.254, and 2.99. Its current market price is $39.93 Question 3. Math C: What is the firm's required retum in equity based on the CAPM marks) Question 3: Math D: What is the firm's after-tax cost of debt