Question 1) What is the minimum lease payment that would make purchasing a computer system and writing a 67year lease contract on. it? The price ofthe computer system Is $175,000, it is a veeyear asset for depreciation purposes, it has a residual value of $3,000, it requires $500 maintenance per year: the cast of capital is 9%, and the corporate tax rate is 40%. (Note: MACRS rates for Years 1 to 6 are 0.20= 0.32. 0.19= 0.12= 0.11 and 0.06.) Question 2) Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4eyear life that costs $40,000 and falls into the MACRS 3-year class. If the rm borrows and buys the truck, the loan rate would be 10%. The truck will be used for 4 years, at the end ofwhlch tune it will be sold at an estimated residual value of 310000. If DTC buys the truck, it would purchase a maintenance contract that costs $1,000 per year, payable at the end of each year. The lease terms call for a $10,000 lease payment (4 payments total) at the beginning of each year. DTC's tax rate is 40% Should the rm lease or buy? (Note: MACRS rates for Years 1 to 4 are 0.33, 0.45; 0.15; and 007.) Question 3) What is [PO underprieing? Use the following information for questions 4 and 5 A company is planning to go public. Currently, the pre-IPO value of the rm's equity is $95 million= the number of outstanding shares is 3.5 million, the company need to raise $1? million, and the oatation cost ofnew equity is 12%. Question 4) Calculate the gross proceeds needed from an IPO given the above information. Question 5) Part a What is the post-PO equity Value? Part 1) What is the offer price