A firm's free cash flow in 2005 (FCF₀) was $180 million, and expect its free cash flow has a constant growth rate at 5%. If the weight average cost of capital (WACC) for the firm is 10%, what's the estimated value for the firm's operating assets? ______

A company is estimating its optimal capital structure. Now the company has a capital structure that consists of 20% debt and 80% equity, based on market values (debt to equity D/S ratio is 0.25). The risk-free rate (r_RF) is 5% and the market risk premium (r_M - r_RF) is 6%. Currently the company's cost of equity, which is based on the CAPM, is 14% and its tax rate is 20%. Find the firm's current leveraged beta using the CAPM______

Based on the above find the firm's unleveraged beta using the Hamada Equation

Based on the information from question 2 and 3, what would be the company's new leveraged beta if it were to change its capital structure to 50% debt and 50% equity (D/.0) using the Hamada Equation? ______

Based on the information from Question 2 , 3, 4, what would be the company's new cost of equity if it were to change its capital structure to 50% debt and 50% equity (D/S .0) using the CAPM? ______

A firm expects to have net income of $5,000,000 during the next year. The company's target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If SL Computer follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year's dividend, then what is the firm's expected dividend payments?

Using the data from the last question, find the firm's dividend payout ratio _

A business analysis has recently been hired to improve the performance of a firm, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm's cash conversion cycle. Using the following information and a 365-day year: Current inventory = $150,000; Annual sales = $730,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $365,000. Calculate the firm's inventory conversion cycle

Based on information from last question, Calculate the firm's receivables collection period and Calculate the firm's payables deferral period. ___

Based on information from the last 2 questions Calculate the firm's cash conversion cycle (CCC). ______

Which of the following methods can be used to improve the firm's cash conversion cycle?