1.FlavR Co stock has a beta of 2.09, the current risk-free rate is 2.09 percent, and the expected return on the market is 9.09 percent. What is FlavR Co's cost of equity?

2.Tom and Jerry's has 2.4 million shares of common stock outstanding, 2.4 million shares of preferred stock outstanding, and 14.00 thousand bonds. If the common shares are selling for $13.40 per share, the preferred share are selling for $10.40 per share, and the bonds are selling for 99.96 percent of par, what would be the weight used for equity in the computation of Tom and Jerry's WACC?

3.JackITs has 6.0 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 30.00 thousand bonds. If the common shares are selling for $29.10 per share, the preferred share are selling for $14.50 per share, and the bonds are selling for 97.90 percent of par, what would be the weight used for equity in the computation of JackIT's WACC?

4.Your firm needs a machine which costs $170,000, and requires $32,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 16%. If this machine can be sold for $17,000 at the end of year 5, what is the after tax salvage value?

5.Your Company is considering a new project that will require $21,000 of new equipment at the start of the project. The equipment will have a depreciable life of 6 years and will be depreciated to a book value of $4,800 using straight-line depreciation. The cost of capital is 8%, and the firm's tax rate is 30%. Estimate the present value of the tax benefits from depreciation.