Below is the corporate finance homework that needs to be completed. If even one question could be answered that would be very helpful thank you!

1.

a)You are interested in estimating a beta for Universal Corporation. Since they are a privately held firm, you do not have access to the necessary data.If you want to estimate a beta for DUC, you will have to work with some comparable firm data.Calculate the unlevered betas for each of the four basic comparable firms shown below. (Hint: Be sure to adjust for the respective tax rates given.)

Comparable Firms Sales Levered TotalTax

($ Mill)Beta Debt Ratio Rate

Float in the Air, Inc. 54.861.45 22.0%25%

Take Me Away, Ltd. 312.291.33 27.0% 35%

It's Raining, Co. 18.901.12 32.0% 30%

Say Goodbye,LLC 75.351.23 45.0% 28%

461.40

b)Estimate an equally-weighted and sales-weighted average unlevered betas using the data from your answer above.

c)Digital has a target capital structure of 10% debt and 90% equity as well as a 40% marginal tax rate.If you estimated an unlevered beta of 1.30, calculate the levered beta for Digital.

d)The current appropriate risk-free rate is 6% and the return on the market is 13.5%.Further assume that you calculated the levered beta above as 1.29.Using the CAPM, estimate DE's cost of equity.Be sure to state any additional assumptions.

2.Your firm is considering what has been estimated to be a positive NPV project (NPV > 0).What can you say or infer about the project's payback period, discounted payback method, IRR, profitability index, and accounting rate of return (Please be thorough)?

3.Basic NPV methods tell us that the value of a project today is NPV₀.Time value of money issues also lead us to believe that if we choose not to do the project that it will be worth NPV₁ one period from now, such that NPV₀ > NPV₁.Why then do we see some firms choosing to defer taking on a project.Be thorough in your answer.

4.Jessie's Co. is considering the purchase of the linerboard mill and corrugated box plants of Royal Paper for a total price of $260 million.The estimated incremental cash flows that would result if Jessie's Co. acquired the facilities are presented below.Jessie's Co. marginal tax rate is 36% and their after-tax cost of capital is 13%.