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1/36 Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay 5.60% coupon bonds which sell for

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1/36 Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay 5.60% coupon bonds which sell for 97.66% of par. Their stock currently has a market value of $24.07 and Mr. Bensen believes the market estimates that dividends will grow at 3.12% forever Next year's dividend is projected to be $2.84 Assuming a marginal tax rate of 32.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to 2 decimal places (Example 9 24%, %6 sign required Will accept decimal format rounded to 4 decimal places (ex. 0.09243) #ST Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $14.00 million fully installed and will be fully deprecated over a 19.00 year life, then removed for no cost. The RGM-7000 result in additional revenues of $2.67 milion per year and increased operating costs of $716.712.00 per year. Caspian Sea Drinks' marginal tax rate is 22.00% The incremental cash flows for produced by the RGM-7000 are Submit Answer format: Currency Round to 2 decimal places A fimm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC 360, costs $26,468.00 to install, $5,070.00 to operate per year for 7 years at which time it will be sold for $7.065.00 The second, RayCool 8, costs $41,924.00 to install, $2.009.00 to operate per year for 5 years at which time it will be sold for $8.984.00 The firm's cost of capital is 5.70%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes Submit Answer format: Currency Round to: 2 decimal places in nundin

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