Petal Providers Corp is interseted in estimating its additional financing needed to support a rapid increase in sales next year. Last year, revenues were $1 million; net profit was $50,000; investment in assets was $750,000; payables and acccruals were $100,000; and stockholders' equity at the end of the year was $450,000. The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future. Calucate AFN

A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales? B. How would your answer to Part A change if the expected sales growth were only 15 percent?

11.) (weighted Average Cost of Capital) Kareem Construction Company has the following amounts of interest-bearing debt and common equity capital:

Financing source	dollar amount	interest rate	cost of caital
short-termloan	200,000	12%
long term loan	200,000	14%
equity capital	600,000		22%

Kareem Contruction is in the 30 percent average tax bracket.

A.) calculate the after-tax WACC for Kareem.