We have the following information about Speedshift's capital structure. a. We also know that Speedshift has...

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We have the following information about Speedshift's capital structure. a. We also know that Speedshift has paid $30 million tax on $100 million pre-tax income last year. It currently sits at a marginal tax rate of 25%. What is Speedshift's weighted average cost of capital (WACC)? Weight Cost of Capital Preferred Shares 20% 15% Short- Term Loan 30% 8% Long- Term loan 25% 11% Ordinary Shares 25% 22% b. Suppose that Speedshift is evaluating an investment opportunity that generate future free cash flow of 10 million, 12 million, 15 million, and 10 million on year 1, 2, 3, and 4, and 0 thereafter. The initial investment is 30 million. Should Speedshift make this investment? We have the following information about Speedshift's capital structure. a. We also know that Speedshift has paid $30 million tax on $100 million pre-tax income last year. It currently sits at a marginal tax rate of 25%. What is Speedshift's weighted average cost of capital (WACC)? Weight Cost of Capital Preferred Shares 20% 15% Short- Term Loan 30% 8% Long- Term loan 25% 11% Ordinary Shares 25% 22% b. Suppose that Speedshift is evaluating an investment opportunity that generate future free cash flow of 10 million, 12 million, 15 million, and 10 million on year 1, 2, 3, and 4, and 0 thereafter. The initial investment is 30 million. Should Speedshift make this investment?