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A) Find D/E ratio for a firm with 20% cost of equity, 10% pre-tax cost of debt, and 40% corporate tax rate if the firm's

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A) Find D/E ratio for a firm with 20% cost of equity, 10% pre-tax cost of debt, and 40% corporate tax rate if the firm's WACO is equal to 14% B) A firm that is expected to pay $3 dividends next year the dividends are expected to grow at a constant rate of 3% per year and the current price of the firm's shares is $60. Assume the after-tax cost of debt is 2%. Find the cost of equity C) Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. A new "take care of equipment program implemented by the firm allowed it to increase the salvage value of the equipment by $20 000 What was the effect of this program on NPV if the project's discount rate is 12% Dy Consider a firm that has invested in a 5 year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate By how much the NPV of the project will increase if the firm would be able to negotiate a $20,000 discount on the equipment it bought? Assume that the salvage value of the equipment stays the same Assume also that the project's discount rate is 12%

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