1,Bradley bought 1,500 shares of KHU stock on August 16^th, 500 shares on August 20^th, and 500 more shares on August 24^th. KHU declared a quarterly cash dividend of $2.29 per share on July 5^th and set the record date on Monday, August 23^rd, and the payment date on August 31^st. How big cash flow will Bradley receive from this quarterly dividend on August 31^st?

2.Paradiso Holidays has expected EBIT of $4,040, an unlevered cost of capital of 22.2% and a tax rate of 21%. The firm also has $2,020 of bonds outstanding with a coupon rate of 4.4%. If the debt is selling at par value, what is the value of this firm assuming all the cash flows are perpetual as in M&M propositions?

3.Moscow Rifles is an all-equity firm with WACC of 14.5%. Moscow Rifles financial manager is thinking about changing a capital structure such that it would have 30% of debt. The expected cost of borrowing would be 2.7% and the corporate tax rate is 21%. According to M&M proposition, what would be Moscow Rifless new cost of equity under such new capital structure?

4.Bobs Computers cost of equity is 11 percent, and its after-tax cost of debt is 3 percent. What D/E ratio is required for Bobs Computers to have WACC of 9 percent?

5.Fruits of Doom has expected perpetual EBIT of $285,000 and no debt in its capital structure. Its cost of equity is 15% and the corporate tax rate is 21%. Fruits of Doom is planning to borrow $950,000 next year at an interest rate of 3.1%. What is the current value of Fruits of Doom?

6.Delta Warehouses is contemplating a new project with an initial cost of $80 million, and annual cash inflows of $10.21 million for 8 years. The new project is believed to be equally risky as the firms existing operations. Delta Warehouses has an aftertax cost of borrowing of 3.85% and a cost of equity capital of 12.15%. The D/E ratio is 0.95 and the tax rate is 21 percent. What is the NPV of this new project?

7.Million Yuan Warehouses has a cost of equity capital of 10.5%, existing bonds with yield to maturity of 5%, and the corporate tax rate is 21%. If the firms D/E ratio is 0.46, what is the firms WACC?

8.Closer To The Core has 110,800 shares of common equity outstanding currently priced at $24 per share. Closer To The Core also has 425 shares of preferred stock outstanding with par value of $100 currently priced at $91 per share. Furthermore, there are 850 bonds outstanding paying 3.1% coupon rate. The bonds have a par value of $1,000, and a current price of 110. What is the weight of the preferred stock in Closer To The Cores capital structure?

9.A firm has 250,000 shares outstanding with a par value of $1 and a current market value of $19 per share. The firm wants to do a 4-for-1 stock split operation. Assuming perfect world with no taxes, what should the price per share be after the split?

10.Simona owns 120 shares of Mumu Fabrics, with a currently market price of $20. Mumu Fabrics pays no cash dividends. What should Simona do, if she wants to achieve a homemade dividend policy of $4 per share. Assume perfect world with zero taxes and no trading costs.

11.Strawberry Inc. has issued bonds with a total par value of $3.42 billion. The issued bonds promise a fixed annual coupon rate of 2.3% and are currently priced at 97% of the par value. What is the annual tax shield resulting from these bonds if the corporate tax rate is 21%?

12.Easyjetter has WACC of 10.9% and cost of equity capital of 15%. Easyjetter is considering the BOMBAYFLY project. Kiteglider is a company with operations which are similar to the BOMBAYFLY project and Kiteglider has WACC of 12%. Easyjetter is less efficient than Kiteglider and thus decides to add an adjustment of +1.5% to the BOMBAYFLY projects discount rate. Based on the given information, what is the discount rate for the BOMBAYFLY project?

13.There are 30,000 shares outstanding of Edison Inc., with a current market price of $41.07 per share. Edison Inc. is going to issue a small stock dividend of 15.7%. How many new shares will be issued, if Edison Inc. successfully conducts its planned stock dividend?

14.Lovelka has a levered cost of equity of 15% and a cost of debt of 4%. Lovelkas expected ROA is 12%. What is Lovelkas D/E ratio according to M&M Proposition II without taxes?

15.Italiano Furniture has 1,295,000 shares of common stock outstanding currently priced at $100.00 per share. The company is planning to buyback $90,000 worth of shares. What will the share price be after the buyback?

16.Lily Flowers has recently issued preferred stock with a dividend rate of 5.90%. This issue is currently priced at $69.30 per share. If the par value is $100, what is the cost of Lily Flowers preferred stock?

17.The expected return on the market is 11.60% and the risk-free rate is 2.78%, while the common equity in Princess Di Inc. has a beta of 0.88. Based on such information, what is the estimated required return on the firms common equity?

18.Kentucky Nuggets Inc. has the same market value and book value. Currently, the company has cash of $4,000 and total assets of $100,000. Kentucky Nuggetss stock is worth $100,000 and the company has 2,000 common shares outstanding. Furthermore, the companys net income equals $11,000. What will the EPS be if Kentucky Nuggets uses its entire cash to complete a buyback of some of its common shares?

19.Michal owns 2,000 shares of common stock in Alizon, Inc., currently priced at $109.00 per share. Alizon, Inc. has just declared a cash dividend of $3.80 per share with an ex-dividend date of the 7^th of April 2021. What will be the price per share of the common stock on the 7^th of April 2021, assuming a perfect world with no taxes?

20.Sizzling Fryers has just made an announcement that it will be repurchasing $240,000 worth of its common shares. If Sizzling Fryers has 44,444 of common shares outstanding currently selling trading at $44.44 per share, and its EPS is $4.44, what will be the PE ratio once the repurchase is completed?