Question: Please I need help with this QUESTION 1 Suppose you borrow $750000 when financing a coffee shop which is valued at $1250000. You expect to

Please I need help with this

Please I need help with this QUESTION 1 "Suppose
QUESTION 1 "Suppose you borrow $750000 when financing a coffee shop which is valued at $1250000. You expect to generate a cash flow of $1380000 at the end of the year. The cost of debt is 5%. What should the value of the equity be? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer." QUESTION 2 "Suppose you borrow $750000 when financing a coffee shop which is valued at $1250000. You expect to generate a cash flow of $1380000 at the end of the year. The cost of debt is 5%. What is the cost of equity? Note: Express your answers in strictly numerical terms. For exam?le, if the answer is 5%, write 0.05" QUESTION 3 "Suppose you borrow $120000 when financing a coffee shop which is valued at $175000. Assume that the unlevered cost of capital for the coffee shop is 7.5% and that the cost of debt is valued at 9%. What should be the cost of equity of your firm? Note: Express your answers in strictl% numerical terms. For example, if the answer is 5%, write 0.05" QUESTION 4 "ECB borrows $1000000 USDs by issuing 5-year bonds. ECB's cost of debt is 4%, so it will need to pay $40000 USDs in interest each year for the next 5 years, and then repay the principal $1000000 USD in year 5. ECB's marginal tax rate will remain 35 throughout this period. By how much (in USDs) does the interest tax shield increase the value of ECB? Note: Express your answers in strictly numerical terms. For exam?le, if the answer is $500, enter 500 as an answer." QUESTION 5 "Axon Industries needs to raise $1000000 USDs for a new investment project. If the firm issues 1-year debt, it may have to pay an interest rate of 10%, although Axon's managers believe that 8% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 9%.What is the cost (in USDs) to current shareholders of financing the project out of retained earnings? Note: Ex?ress %our answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer." QUESTION 6 "Axon Industries needs to raise $1000000 USDs for a new investment project. If the firm issues 1-year debt, it may have to pay an interest rate of 10%, although Axon's managers believe that 8% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 9%.What is the cost (in USDs) to current shareholders of financing the project out of debt? Note: Express your answers in strict% numerical terms. For example, if the answer is $500, enter 500 as an answer." QUESTION 7 "Axon Industries needs to raise $1000000 USDs for a new investment project. If the firm issues 1-year debt, it may have to pay an interest rate of 10%, although Axon's managers believe that 8% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 9%.What is the cost (in USDs) to current shareholders of financing the project out of equity? Note: Express four answers in strictlf numerical terms. For example, if the answer is $500, enter 500 as an answer."

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