need solution step by step

1. Mei Wah's Delivery Service is analyzing the credit terms of each of three suppliers, A, B, and C

supplier credit terms

A 1/15 net 40

B2/10 net 30

C2/15 net 35

a. determine the approximate cost of giving up the cash discount?

b. Assuming the firm needs short-term financing, recommend whether or not the firm should give up the cash discount or borrow from the bank at I0 percent annual interest. Evaluate each supplier separately?( recommendation: yes/no)

c. What is "stretching accounts payable"? What effect does this action have on the cost of giving up a cash discount?

2. A manufacturing firm is contemplating shortening its credit period from 40 to 30 days. The firm's management believes that as a result of this change, the company's average collection period will decline from 45 to 36 days. Bad-debt expenses are expected to decrease from 1.5% to 1% of sales. The firm is currently selling 12,000 units but believes that as a result of the proposed change, sales will decline to 10,000 units. The sale price per unit is $56, and the variable cost per unit is $45. The firm has a required return on equal-risk investments of 25%. Assuming a 365-day year, evaluate this decision and make a recommendation to the firm.

Net gain or Loss from implementation of Proposed Plan and Recommendation?

3. A firm has determined its optimal capital structure that is composed of the following sources and target market value proportions.

Source of Capital Target Market Portfolio

Long Term Debt 20%

Preferred Stock 10

Common Stock Equity 70

Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40.

Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share.

Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. its dividend payments have been growing at a constant rate for the last four years. four years ago,the dividend was $1.50. it is expected that to sell, a new common stock issue must be underpriced by $0.50 per share cost s $0.50 per share in flotation costs. also note that the firm has exhausted all retained earnings

the firm's marginal tax rate is 40%

Calculate the firm's weighted average cost of capital?

cost of debt(after tax)=?

cost of preferred stock=?

cost of common stock=?

WACC=?