a. Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.69% coupon bonds which sell for 98.43% of par. Their stock currently has a market value of $25.92 and Mr. Bensen believes the market estimates that dividends will grow at 3.14% forever. Next year's dividend is projected to be $2.47. Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)? Please show an explanation or steps to this problem.

b. Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the NPV of the PJX5?

a. The PJX5 will cost $1.89 million fully installed and has a 10 year life. It will be depreciated to a book value of $184,939.00 and sold for that amount in year 10.

b. The Engineering Department spent $27,634.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,721.00.

d. The PJX5 will reduce operating costs by $337,596.00 per year.

e. CSD's marginal tax rate is 37.00%.

f. CSD is 56.00% equity-financed.

g. CSD's 19.00-year, semi-annual pay, 5.54% coupon bond sells for $967.00.

h. CSD's stock currently has a market value of $22.87 and Mr. Bensen believes the market estimates that dividends will grow at 3.54% forever. Next year's dividend is projected to be $1.75.

Please show an explanation or steps to this problem.

c. A firm issues preferred stock with a dividend of $2.27. If the appropriate discount rate is 6.10% what is the value of the preferred stock?Please show an explanation or steps to this problem.Please show an explanation or steps to this problem.

d. A firm will pay a dividend of $3.37 next year. The dividend is expected to grow at a constant rate of 2.17% forever and the required rate of return is 13.69%. What is the value of the stock?Please show an explanation or steps to this problem.Please show an explanation or steps to this problem.

e. Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJX5?

a. The PJX5 will cost $1.89 million fully installed and has a 10 year life. It will be depreciated to a book value of $289,660.00 and sold for that amount in year 10.

b. The Engineering Department spent $44,456.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,334.00.

d. The PJX5 will reduce operating costs by $331,671.00 per year.

e. CSD's marginal tax rate is 26.00%.

f. CSD is 66.00% equity-financed.

g. CSD's 15.00-year, semi-annual pay, 6.23% coupon bond sells for $1,015.00.

h. CSD's stock currently has a market value of $21.19 and Mr. Bensen believes the market estimates that dividends will grow at 4.17% forever. Next year's dividend is projected to be $1.75.

Please show an explanation or steps to this problem.

f. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $22.00 million. The plant and equipment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Net working capital will increase by $1.48 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $8.86 million per year and cost $2.43 million per year over the 10-year life of the project. Marketing estimates 11.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 23.00%. The WACC is 15.00%. Find the NPV (net present value).Please show an explanation or steps to this problem.

g. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $28.00 million. The plant and equipment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Net working capital will increase by $1.47 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.40 million per year and cost $1.68 million per year over the 10-year life of the project. Marketing estimates 19.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 28.00%. The WACC is 15.00%. Find the IRR (internal rate of return).Please show an explanation or steps to this problem.