4. Bolster Foods' (BF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The balance shect also shows that the company has 10 million shares of stock, and the stock has a book value per share of $.00. The current stock price is $20.00 per share, and stockholders' required rate of return (r1) is 12.25%. The company recently decided that its target capital structure should have 35% debt, with the balance being common equity. The tax rate is 40%. Complete the following column to calculate the WACCs based on the weights of book, market, and target capital structure. (13 points) 5. Temple Corp, is considering a new project whose data are shown below. The equipment that would be used has a 4-year tax life, would be depreciated by the straight-line method over its 4-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 4-year life. What is the project's NPV? A) Calculate the FCFs for 4 years. (Prepare the Statement of Free Cash Flows) ( 10 points) B) What is the NPV? (2 points) 6. Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. (WACC 8.75% ) A) What is the crossover rate of Project S and Project L. ( 2 points) B) Calculate the following information of Project S and Project L respectively: (1) NPV ( 2 points) (2) IRR ( 2 points) (3) MIRR (2 points) C) Which project should be accepted? ( 2 points)