Question: please answer all question please Problem 1 (20 points) Consider company ABC that is getting 28% of its funding through bonds and the rest through


Problem 1 (20 points) Consider company ABC that is getting 28% of its funding through bonds and the rest through shares. Its marginal tax rate is equal to 6%. The yield to maturity on its bonds is 5% and the required rate of return on shares is equal to 8%. Calculate the WACC. Show your work. (Write value of WACC in the Answer field in decimals, for example: instead of 12.3% write 0.123; Steps and interpretation you can write in the text box below) Answer: Give your reasons 7 Problem 2 (20 points) Project X costs $1,000, its expected cash inflows are $423.1 per year for 3 years, and its WACC is 10%. What is the project's NPV (write in the answer field)? Would you accept or reject the project (write in the text box below the answer field)? Answer: Give your reasons 1 Propiem 3 (20 points) Project X cash flows is given on the timeline below 0 1 2 3 Project X -510,000 $6,500 $3,000 $3,000 $1,000 Calculate Project X NPV if WACC=10% Round your answer to the nearest hundredth, have at least two decimal digits and write it in the Answer field. Would you accept or reject the project (write in the textbox below the answer field)
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