A firm is financed 68% by common stock, 10% by preferred stock and 18% by debt. The

required return is 11% on the common, 10% on the preferred, and 5% on the debt. If the tax rate

is 21% what is the WACC?

You have the following cash flows for the firm;

What is NPV, if discount rate is 10% ?

CF₀ = -496 (CF₀ is always negative. It is your initial investment)

CF₁ = 781

CF₂ = 774

CF₃ = 887

CF₄ = 785

CF₅ = 907

You have the following cash flows for the firm;

What is NPV, if discount rate is 10% ?

CF₀ = -442 (CF₀ is always negative. It is your initial investment)

CF₁ = 685

CF₂ = 579

CF₃ = 656

CF₄ = 790

CF₅ = 929

Need help thank you