Question: Please answer the five finance problems in the attached file. If you use a formula to solve the equation, please show the formula. I need

 Please answer the five finance problems in the attached file. If

Please answer the five finance problems in the attached file. If you use a formula to solve the equation, please show the formula. I need these questions answered in the next 30 minutes.

you use a formula to solve the equation, please show the formula.

The weightedaverage cost of capital is the return the company needs to earn after tax in order to satisfy all its security holders. 1. a. True b. False Question 2. a. b. c. d. Why is debt financing said to include a tax shield for the company? Taxes are reduced by the amount of the debt. Taxes are reduced by the amount of the interest. Taxable income is reduced by the amount of the debt. Taxable income is reduced by the amount of the interest. What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 40% tax rate? Question 3. a. b. c. d. 9.6% 12.0% 13.6% 16.0% Calculate a firm's WACC given that the total value of the firm is $2,000,000, $600,000 of which is debt, the cost of debt and equity is 10% and 15%, respectively, and the firm pays no taxes. Question 4. a. b. c. d. 9% 11.5% 13.5% 14.4% A company's CFO wants to maintain a target debttoequity ratio of 1/4. If the WACC is 18.6%, and the pretax cost of debt is 9.4%, what is the cost of common equity assuming a tax rate of 34%? Question 5. a. b. c. d. 19.90% 20.90% 21.70% 22.73%

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