Question: PLEASE!!!! only asking for the last 4!!!! please please!! will leave a like!!!! lookinh for fhe NPV, IRR, and Breakeven unit sales Phillips' current capital


Phillips' current capital structure is comprised of $300,000,000 in debt, $150,000,000 in preferred equity, and $450,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 7.5% and a current market price of $865. Preferred shares of Phillips are trading at $67/ share and pay an anual dividend of $1.75/ share. Common stock of Phillips has a beta of 1.1 and trades at $46/ share. The 10 -year US treasury yield is 4.25%. The market risk premium is estimated at 7.75%. Their tax rate is 35%. Round answers to four decimal places (ie.1125 or 11.25% ) - What is the current cost of Phillips debt capital? - What is the current cost of Phillips preferred equity capital? - What is the current cost of Phillips common equity capital (using CAPM)? - What is Phillips Weight Averaged Cost of Capital? Use your answers above and the information below to complete the remaining questions. PROJECT CASH FLOWS Philips expects to invest $18,500,000 in new/plant equipment. The contract will last for 10 years, at which point it expects its plant equipment to have a salvage value of $7,000,000. They plan to finance this project using 65% debt ant 35% equity. Their investment banker advises there are transaction costs of 2.0% on debt and 11.0% on equity. Phillips expects to increase its accounts receivable by $1,500,000, its inventory by $4,000,000, and its accounts payable by $2,500,000. It expects to sell 45,000 units at a price of $275/ unit, with variable cost per unit of $165. It expects additional operating costs each year of $900,000. Phillips tax rate is 35%. - What is the annual depreciation for the fixed assets of this project? - What is the firm's weighted average flotation cost? (round to four decimal places) - What is the firm's flotation adjusted Initial Capital Expenditure? (round to nearest $100,000 ) - What is the projected Cash flow at Year 0? (round to nearest $100,000 ) - What is expected Cash flow Year 1-9? (round to nearest \$100,000) - What is the expected Cash Flow of Year 10 ? (round to nearest $100,000 ) What is the firm's flotation adjusted Initial Capital Expenditure? (round to nearest $100,000) - What is the projected Cash flow at Year 0? (round to nearest $100,000) - What is expected Cash flow Year 1-9? (round to nearest $100,000 ) - What is the expected Cash Flow of Year 10 ? (round to nearest $100,000 )
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