1. ABC Inc wants to know what the after-tax cost of its debt would be. That company has a marginal tax rate of 35% and the interest rate on the new debt is 5%. Calculate the cost of debt. (4 points) 2. The issuance of shares has floating costs. Company XYZ will issue shares at $25 and the cost of underwriting is 2%. They also pay a dividend of $1. Calculate the cost component of preferred stock (rps). (4 points) 3. Use the Discounted Cash Flow (DCF) method to calculate the required return of a company that sells its shares for $40 and a dividend of $1 is expected. Also the growth rate is 5% (4 points) 4. Assume a company has bonds paying 4% and the judgment rate on te premium yield of its bonds is estimated to be 2%. Calculate the required return. (4 points) 5. A company is evaluating an investment of $5,000. The future cash flows will be $3,000 for year 1, $3,500 for year 2, and $4,500 for year 3. The cost of capital is 8%. Calculate the net present value (NPV). (4 points) 6. A company needs to find the operational "break-even point". Her products have a selling price of $15 and she hopes to sell 1,000 units. Variable costs are $2,000 and fixed costs are $4,000. Calculate the "operating break-even point". (4 points) 7. Complete the following: Business Bisk + Financial Bisk = (1 point) (Ctrl