7. A company buys an asset and uses straight-line depreciation. In the first year of the asset's use, what effect will this have on asset turnover and debt-to-equity compared to if the company had used an accelerated method for depreciation? Corporate Finance 8. An analyst has gathered the following information regarding the capital structure and component costs for a company: Capital Source Book Value (m) Market Value (m) Component cost (pre-tax) Debt $20 $19 5% Preferred stock $15 $16 9% Common stock $22 $30 12% The company's marginal tax rate is 30%. What is the company's weighted average cost of capital? 9. A project required an initial investment of 10 million. The after-tax cash flows were 4 million in year 1, 3.5 million in year 2 and 6 million in year 3 and the required rate of return was 12%. What was the project's net present value