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ALL PARTS TO ONE QUESTION PLEASE ANSWER ALL. THANK YOU You are given the following information concerning Around Town Tours Co, which is a publicly

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You are given the following information concerning Around Town Tours Co, which is a publicly traded company. The tax rate is 34%. Common stock: 284,000 shares outstanding, selling for $68 per share. Preferred stock: 9,000 shares outstanding, currently selling for $88 per share, dividend is $8 per share. Debt: Total market value of debt is $7,342,500. What is the weight of debt? a. 70.54% b. 2.89% C 26.75% d. 3.70% Alpha Corp. is considering adding a new product to its lineup and have estimated the following: Year o cash flow: -$14,500 Year 1 cash flow: $2,200 Year 2 cash flow: $4,800 Year 3 cash flow: $6,500 Year 4 cash flow: $7,500 Alpha Corp.'s estimated WACC is 10%. What is the NPV of the project? a $70.944.27 b. $28,700 C. $1473.09 d. $8,944.27 Alpha Corp. is considering adding a new product to its lineup and have estimated the following: Year o cash flow: -$14,500 Year 1 cash flow: $2,200 Year 2 cash flow: $4,800 Year 3 cash flow: $6,500 Year 4 cash flow: $7,500 What is the IRR of the project? a. 30.11% b. 50.05% c. 13.86% d. 3.97% Alpha Corp. is considering adding a new product to its lineup and have estimated the following: Year o cash flow: -$14,500 Year 1 cash flow: $2,200 Year 2 cash flow: $4,800 Year 3 cash flow: $6,500 Year 4 cash flow: $7,500 Alpha Corp.'s estimated WACC is 10%. What is the payback period of the project? a 1.6 years b. 3.1 years c. 3.7 years d. 2.6 years

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