Question: please answer all 3 questions for a thumbs up AllCity, Inc., is financed 42% with debt, 12% with preferred stock, and 46% with common stock.


AllCity, Inc., is financed 42% with debt, 12% with preferred stock, and 46% with common stock. Its cost of debt is 6.5%, its preferred stock pays an annual dividend of $2.52 and is priced at $25. It has an equity beta of 1.11. Assume the risk-free rate is 2.5%, the market risk premium is 7.2% and AllCity's tax rate is 25%. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. The WACC is % (Round to two decimal places.) Pid Company has debt with a yield to maturity of 6.2%, a cost of equity of 14.8%, and a cost of preferred stock of 8.9%. The market values of its debt, preferred stock, and equity are $13.4 million, $3.1 million, and $14.6 million, respectively, and its tax rate is 21%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is 3%. (Round to two decimal places.) A retail coffee company is planning to open 95 new coffee outlets that are expected to generate $15.2 million in free cash flows per year, with a growth rate of 3.2% in perpetuity. If the coffee company's WACC is 9.1%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)
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