Question: this is the third time I've been asking for help, and the tutors didn't answer my question as it is required in the word, please

Computerized Business Systems (CBS) transforms manual accounting and inventory systems into computerized, more efficient, systems. Many of their customers describe the transition as anovernight evolution from the dark ages to the 21st century. Manual systemsare far too cumbersome with respects to both time and inventory control.CBS's computerized inventory systems, for example, allow every item in inventory, nomatter how small, to be tracked at all points throughout the productionprocess. Replenishing stock becomes an automatic process because the CBS system alertsthe manager when supplies reach a pre-programmed level. Vicky Pagel has beena financial analyst with CBS for over five years. Although she normally


this is the third time I've been asking for help, and the tutors didn't answer my question as it is required in the word,  please help me out, what do I have to put in the yellow question with explanation.

thank you 

Computerized Business Systems (CBS) transforms manual accounting and inventory systems into computerized, more efficient, systems. Many of their customers describe the transition as an overnight evolution from the dark ages to the 21st century. Manual systems are far too cumbersome with respects to both time and inventory control. CBS's computerized inventory systems, for example, allow every item in inventory, no matter how small, to be tracked at all points throughout the production process. Replenishing stock becomes an automatic process because the CBS system alerts the manager when supplies reach a pre-programmed level. Vicky Pagel has been a financial analyst with CBS for over five years. Although she normally does not get involved with sales, her most recent assignment was to assist Jack Ingram, a new sales representative. Jack is in the process of trying to sell a CBS system to Corbin Mills, a firm that does not know how to determine accurately its weighted average cost of capital (WACC). Corbin Mills, therefore, cannot determine whether the net present value (NPV) of the CBS system is positive or negative. To calculate Corbin Mills' WACC, Vicky first needed to gather information on the firm's cost of raising funds from various sources. As she proceeded with the analysis, she learned that Corbin Mills could issue 20-year corporate bonds at a coupon rate of 9%. As a result of current interest rates, the bonds could be sold for $1,005 each. These bonds have floatation costs of $35 per bond, pay interest semi-annually, and have a par value of $1,000. A corporate tax rate of 40% applies. Corbin Mills can raise additional funds through either retained earnings or new issues of common stock. Their common stock is currently selling for $68.25 per share. The most recent dividend paid was in the amount of $2.25. Corbin's dividends have previously grown at a rate of 4%, but this growth rate is expected to jump to 10% the year after and continue at this rate to infinity. If the firm wanted to sell new shares of common stock, after underpricing and floatation costs, they could do so for $62.75 per share. A final source from which funds could be raised is via preferred stock. $100-par preferred stock can be issued at an 11% annual dividend rate. After floatation costs, the preferred stock would sell for $95.50 per share. The final set of information needed to calculate the WACC is the proportion of total funds that each asset class represents. This information is given in Table 1. In performing the NPV calculation, net after-tax cash flows must be known. These cash flows are given in Table 2. All variables such as improvements in efficiency, employee training costs, and salvage value are already incorporated in the cash flows.

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