1) Leos Cars has a beta of 1.1 and its R_WACC is 13.6 percent. The market risk premium is 7.2 percent, and the risk-free rate is 2.3 percent. The firm's cash flow at Time 4 is $28,800 with a growth rate of 2.1 percent. What is the value of the firm at Time 0?

Group of answer choices

$153,534.88

$150,238.21

$251,004.16

$260,729.20

$255,693.91

2) Alaskan Markets has a target capital structure of 40 percent debt and 60 percent equity. The pretax cost of debt is 6.3 percent, the tax rate is 35 percent, and the cost of equity is 14.6 percent. The firm is considering a project that is equally as risky as the overall firm. The project has an initial cash outflow of $1.92 million and annual cash inflows of $562,000 at the end of each year for 4 years. What is the NPV of the project?

Group of answer choices

-$153,776.15

$161,950.98

-$174,087.95

$157,001.03

$148,914.70

3) Alaskan Markets has a target capital structure of 50 percent debt and 50 percent equity. The the tax rate is 40 percent, and the cost of equity is 10 percent. If the WACC is 8 percent, find the pretax cost of debt?

Group of answer choices

18%

16%

12%

10%

14%