1) Hammond/Lauderdale Corporation uses no preferred stock. Their capital structure uses 64% debt (hint: the rest is equity). Their marginal tax rate is 21.85%. Their cost of equity is 15.93%, and their before-tax cost of debt is 6.05%. What is Hammond/Lauderdale's weighted average cost of capital (WACC)? Please enter without using the "%", but with two decimal places (in other words if you calculate 9.87%, then just enter 9.87).

2). You have become extremely wealthy in large measure due to your Tarleton education. You have decided to literally give back. You want to set up a fund that will fund a faculty position in finance (of course). Based on your research, a good faculty member would require a compensation package of $116,780 per year (salary, benefits and retirement package). If you assume that you can earn 2.93%, how much will you have to donate to fund this position in perpetuity (enter your answer to the nearest cent)?

3) You want to be able to live in a penthouse in downtown Dallas. You can't afford one right now, but want to buy one in 7 years. You found a penthouse that would be perfect. It was listed at $4,198,173 today (and that is how much you would have to pay now). You have studied the inflation rate for real estate in Dallas, and have found that the price of comparable properties grows at about 4.51% per year. At that rate, how much will your dream penthouse be selling for in 7 years? Please enter the price to the nearest penny.