1) A project has the following information. Price is $62 per unit, variable cost is $41 per unit, fixed costs is $15500, required return is 12%, initial investment $24000, project life is 4 years. Ignoring taxes,

1. Whats accounting breakeven
2. Whats cash breakeven
3. Whats financial breakeven?
4. Whats DOL at financial breakeven level?

2) A stock has a beta of 1.05. The expected return of the market is 10%, and risk free rate is 3.8%.

Whats the expected return of the stock?

3) Holdup bank has an issue of preferred stock with a 4.25 stated dividend and its selling for $92 per share. Whats the cost of its preferred?

4) Molineux corp. has market value of equity at $20 billion, and its debt book value is $4 billion. Its cost of equity is 12%, and pretax cost of debt of 7%. Its tax rate is 35%.

1. Whats the companys capital structure?
2. Whats the after tax cost of debt?
3. Whats the companys WACC?