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4) A company targets a capital structure of 30% debt, 20% preferred, and 50% equity. Use your answers to questions 1, 2, and 3 for

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4) A company targets a capital structure of 30% debt, 20% preferred, and 50% equity. Use your answers to questions 1, 2, and 3 for the costs of capital. What is the firm's WACC? 5) A company is considering buying a machine that costs $1000. The machine will generate net cash flows of $150 each year for five years. At the end of year five, the machine can be sold for $300. The company's WACC is 8%. What is the NPV of buying the machine? Should the company buy the machine? 1) In the market, a company's debt trades at a yield of 6.0%. Its tax rate is 25%. What is the company's after-tax cost of debt? 2) A preferred stock pays a dividend of $8.00 a year. Its current price is $120. What is the cost of preferred stock in its weighted average cost of capital? 3) A company's dividend yield is 4.0%. Its growth rate is 4.0%. Using the formula: r=(D/P)+g, determine the equity cost of capital. 4) A company targets a capital structure of 30% debt, 20\% preferred, and 50% equity. Use your answers to questions 1,2 , and 3 for the costs of capital. What is the firm's WACC? 5) A company is considering buying a machine that costs $1000. The machine will generate net cash flows of $150 each year for five years. At the end of year five, the machine can be sold for $300. The company's WACC is 8%. What is the NPV of buying the machine? Should the company buy the machine

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