1) 2011 aler 2 9) What is the IRR for the following project fits initial r after-tax operating cash inflows of $1,500,000 in year 1, 51.900.000 in year 4 a) 15 579 b) 25 379 e) 13.579 d) 12.25 e 51.700.000 expected to provide pos years 100.000 10) A firm with a weighted average cost of capital of 16 percent budgeting projects. The internal mates of return of these projects l y exclusive Project Project 2 TRR P act The firm should a) accept all projects b) accept Project 2, and reject Projects 1 and 3 c) accept Project 3, and reject Projects 1 and 2 d) reject all projects 11) Generally, for a corporation, the order of capital cost from the most expensive to the least expensive source a) new common stock, retained earnings, preferred stock, long-term debe b) common stock, preferred stock, long-term debt, short-term diebt c) preferred stock, new common stocks, common stock, retained camins d) long-term debt, preferred stock, retained earnings, now common stock 12) Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year maturity and a 10 percent annual coupon rate. In order to sell the issue, the firm's $1,000 par value bonds must be underpriced and sold at $950. In addition, the firm would have to pay flotation or issuance costs of 5 percent of the par value. The firm's corporate tax rate is 30 percent. Given this information, the after-tax cost of debt for Nico Trading would be a) 7.26% b) 11.17% c) 7.82% d) 7.39% 13) Tangshan Mining is considering issuing long-term debt. The debt would have 30 years to maturity and a 12 percent annual coupon rate, with coupon payments paid semi-annually. In order to sell the issue, the 1.000 par value bonds must be sold at a discount of 2.5 percent of the par value. In addition, the firm would have to pay flotation or issuance costs of 2.5 percent of the par value. The firm's corporate tax rate is 20 percent. Given this information, the after-tax cost of debt for Tangshan Mining would be a) 12.65% b) 6.32% c) 3.79% d) 5.06%