1) If you have a company that has a Market Value of Equity of $400 and Market Value of Debt of $200, what is its weighted average Cost of Capital if CAPM tells you their cost of equity is 15% and their Pretax Cost of Debt is 5% with a tax rate of 20%? Hint: the proportion of debt to total capital and equity to total capital is there staring you in the face! Just think if you had 4 apples and 2 oranges what percentage of your fruit is apples?

2) XYZ CO has just paid an annual dividend of $3.00. Analysts are predicting a 5.0% per year growth rate in earnings through the foreseeable future. If XYZCOs cost of capital is 9.0% and its dividend payout ratio remains constant, what should the stock sell for?

3) What is the Net Present value and IRR on an investment stream of -20,000 upfront, 10,000 in year 1, 12,000 in year 2, 15,000 in year 3, 10,000 in year 4? Discount rate is 10%.

Please answer each individually