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5,6,7 please Elanadian mall slocks S. One year ago. Yoke purchased 100 shares of stock for $3,896. Since that time, he has received a total

5,6,7 please image text in transcribed
Elanadian mall slocks S. One year ago. Yoke purchased 100 shares of stock for $3,896. Since that time, he has received a total of SINO in dividends. If the sells the stock at today's market price he will realize a total return on this investment of 1037%. Assuming he sells the stock today. what is the dollar amount of his capital gain per share of stock? A) SI NO D) $404 6. Your firm is considering a project which requires an initial investment of S5 million Your target D E ratio is 067. Flocation costs for equity are 8% and flotation costs for det are 2%. What is the true cost in dollars) of the project when you consider flotation costs A) $5.00 million B) S5 26 million 55 30 million D) SS. 59 million E) SS.61 million 7. An unlivered firm has 10,000 shares outstanding. The firm can borrow $40,000 a 6 0 buyback hall of its shares without altering existing share price. What is the firm's becak- even EBIT if there are no corporate or personal taxes? A) $600 B) $2.400 a $3.600 E) None of the above & Which of the following is true about the WACC) A) The optimal capital structure is the one that maximize the WACC. B) The value of the firm will be maximized when the WACC is minimized C) The WACC is the appropriate discount rate for all new projects of the firm D) The WACC is impossible to calculate for a firm with multiple divisions E) Since discount rates and firm value move in the same direction, minimizing the WACC will minimize the value of the form 9. Which of the following statements is a true regarding corporate borrowing when EBIT is positive A) Increasing financial leverage increases the sensitivity of EPS and ROE to changes in EBIT B) Increasing financial leverage decreases the sensitivity of EPS and ROE to changes in EBIT. Leverage is favourable when EBIT is relatively low and unfavourable when EBIT is relatively high. D) Leverage is favourable when EPS is relatively high and unfavourable when EPS is

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