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1.) XYZ Corp. has equity beta 1.6 and market value of equity $210 million. The required return on XYZs debt is 7.2%. The market value

1.) XYZ Corp. has equity beta 1.6 and market value of equity $210 million. The required return on XYZs debt is 7.2%. The market value of that debt is $240 million. The risk-free rate is 2% and the expected return on the market is 8.2%. What is XYZs WACC (no tax)?

2.) A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100 (Year 0), 1000 (Year 1), 350 (Year 2), 50 (Year 3). Project L: -1,100 (Year 0), 0 (Year 1), 300 (Year 2), 1,500 (Year 3). The companys cost of capital is 12 percent. Project Ss IRR is . Project Ls IRR is

3.) A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100 (Year 0), 1000 (Year 1), 350 (Year 2), 50 (Year 3). Project L: -1,100 (Year 0), 0 (Year 1), 300 (Year 2), 1,500 (Year 3). The companys cost of capital is 12 percent. Project Ss NPV is . Project Ls NPV is

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