1. Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? show your calculation. Annual sales = S45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500 a. 28 days b. 32 days c. 35 days d. 39 days e. 43 days 2. Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its nonfree trade credit if it pays 120 days after the purchase? (Assume a 365-day year.) show your calculation. a. 16.05% b. 16.90% c. 17.74% d. 18.63% e. 19.56% 3. You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC? show your calculation. a. 8.15% b. 8.48% c. 8.82% d. 9.17% e. 9.54% 4. A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond, what is the Year 0 value of operations, in millions? show your calculation. Year: 1 2 3 Free cash flow: -$15 $10 $40 a. $315 b. $331 c. $348 d. $367 e. $386 5. Based on the corporate valuation model, Hunsader's value of operations is $300 million. The balance sheet shows $20 million of short-term investments that are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share? show your calculation. a. $13.72 b. $14.44 c. $15.20 d. $16.00 e. $16.80 Please show your computation for every