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1) A company has a Default risk 5%, Liquidity premium of 3% and Maturity premium of 1%. Assuming that risk free interest rate is 3%,

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1) A company has a Default risk 5%, Liquidity premium of 3% and Maturity premium of 1%. Assuming that risk free interest rate is 3%, what's the cost of debt for this company? ( cost of debt :rd=Rf+DRP+LP+MP) 2) A $1,000,000 Venture is financed with 70% equity and 30% debt. Cost of debt is 7%; tax rate expected at 25%, and equity required return is 25%. Calculate its WACC. 3) With the following info: a) Calculate its cost of equity alone under CAPM; b) Calculate the total private venture cost of equity 4) ABC Corporation has the following info: - EBIT =$650,000 - Total Capital =$2,000,000 - WACC =15% - Tax rate =25% Calculate its NOPAT and EVA

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