1. What are the major benefits for a company to calculate the weighted average cost of capital? 2. You as the manager of Texzon Company have been asked by your president to purchase a machine for your production department. A new machine can be purchased for Tk. 7,60,000 with the estimated life of four years and it would cost another Tk. 40,000 to set up the machine. It is expected that the machine would be sold after four years for Tk. 30,000. The machine will fall into the MACRS three- year class, which is: Y, 25 %, Y, 35 %, Y; 22 %, and Y4 5 %. Use of this machine would require an increase in net working capital of Tk 27,000. The machine would have no effect on revenues, but it is expected to save the firm Tk 95,000 per year in before tax operating costs. The firm marginal tax rate is 37%. i) If the new machine is purchased, what is the amount of the initial investment outlay at year Y? ii) Determine the incremental operating cash flows for years 1 through year 4. iii) What is the terminal cash flow at the end of year 4? 3. Issuing common stock for BDT 34,00,000 with Tk. 100 each and need to pay flotation cost of 6.5%. The company's next expected dividend is Tk. 22.5 per share and the dividend payout ratio is 34% where the return from its reinvestment is 13.5%. Please calculate the cost of common stock