can you please help me solve the attached questions

26) Gamblers Casino is undergoing a major expansion. 30| The ABC Company is planning a $64 million The expansion will be financed by huing new 15- expansion. The expansion is to be financed by selling year, $1,000 par, 9% annual coupon bonds. The 525.6 million in new debt and $38.4 million in new market price of the bonds h $1,070 each. Gambler common Mock. The before-tax required rate of return flotation expense on the new bonds will be $50 per on debt is 9 percent and the required rate of return bond. Gamblers marginal tax rate is 35%. What is the on equity h 14 percent. If the company is in the 35 after-tax cost of debt for the newly hived bonds? percent tax bracket, what is the firm's cost of capital? AJ 8.92% AJ 531% BJ 9.89% Bj 5.69% q 10.74% () 817% DJ 11 50% DJ 876% E 12.OOM E) 9.00% Answer: Amwer 31) Gothier, Inc. has a target capital structure of 40% 27) Which of the following is tax deductable ? debt and 60% common equity, and has a 40% A) Interest payments on debt Bj Principle payment on debt marginal tax rate. If Clothier's yield to maturity when () Dividend payments to preferred stockholders the bonds were haued is 7 5% and Investors require a DJ Both A & B are correct 15% return on Clothier's common stock, what is the E) All of the above are tax deductable firm's weighted aver age cost of capital? AJ 7.2% Amwes 81 87% 28) Kelly Corporation will have new common stock to q 108% finance an expamion. The existing common stock just DJ 12.25% paid a $1.50 dividend, and dividench are expected to ( 12.DON grow at a constant rate ON Indefinitely. The stock Antwer: well for $45, and flotation expenses of 5% of the telling price will be incurred on new shares. What is 12) Kendall, Inc. has $15 million of outstanding bond the cost of new common stock be for Kelly Corp.7 with a coupon rate of 10 percent. The yield to A| 3.79% maturity on these bonds at hauance is 12.5 percent. Bj 11.33% if the firm's tax rate is 30 percent, what is relevant ( 1151% cost of debt financing to Kendal, Inc.? DJ 11.6ON AJ 3.75% () 11.79% BJ 700% Amwes DJ 8.75% ( 13.75% 29) Royal Mediterranean Cruise Line's common stock is selling for $22 per share. The last dividend wan $1.20, Anwer: and dividends are expected to grow at a 6% annual rate. Flotation costs on new Mock sales are 5% of the selling price. What is the cost of Royal's new common stock? A) 5.73% Bj 609% () 1145% Dj 11 78% E) 12.09% Amwes33) The interest rate of a one year security in the United 35] What is the Modified IRR of Project 2 Broke Girls? States is 4.5%%, while the interest rate on a one year A| 13 10% security in Germany is 10.5%. If the current exchange B| 17 84% rate is (1=$1.50, then the future exchange rate in Q 22.55% one year according to the international Fisher effect Dj 29.33% 40.50% A) (1=$0.7049 B) (1=$14186 Answer: () (1=$15000 DJ (1=$15675 37) What is the Modified IRR of Project Terra Nova? E) (1=$1.5861 AJ -10.84% 81 -5.81% Answer: q 11.85% DJ 12 15%% Chapter 10 [ 12.37% Use the information below for questions 35-44. Answer: You work for a TV network and have been given the following four projects. All numbers below are in millions 38) When using the Internal Rate of Return for Project with Year O representing today. Your firm's required rate Whitney which of the following is true? of return is 12% per year. Note Projed 2 Broke Girls has Al We should take on Project Whitney since its IRR is no cash flows in year 4. 1210%% which is the same as our required rate of return Project2 Project Bj We should reject Project Whitney since its IRR is Project Broke Tera Project Prject 11.55% which is below our required rate of Revenge Girks Nova Whitney Grimm return Year CF CF CF CE CE g Weshould reject Project Whitney since its IRR is 0 $145 $120 12 91% which is above our required rate of 1 $1 1 return 2 $2.2 57.7 52.2 $30 $40 $3.3 Dj We should take on Project Whitney since its IRR is 51 1 12.91% which is above our required rate of return 34) What is the Net Present Value of Project Revenge? [ We should take on Project Whitney since its IRR is A) $2.96 million 11.55% which is below our required rate of 8| $3 32 million return () $3.61 million DJ $4.50 million Answer: E) $5.50 million 39) Your firm only has $17 million to spend on the Answer: following investments. Using the profitability index (Pl which projects should we take on? 35) What is the Net Present Value of Project Terra Nova? Al Project Revenge & Project 2 Broke Girls Aj $-310 million 8| Project Revenge, Projed 2 Broke Girls & Project Bj $-2. 10 million Whitney CJ $0.09 milion 9 Project Revenge & Projed Whitney DJ $10.10 milion DJ Project Terra Nova E) $12 03 milion [ Project 2 Broke Girls & Project Terra Nova Arewer: Answer:_40j What is the equivalent annual annuity (EAA] for Project 2 Broke Girl ? Aj 50.56 million Bj $0.71 million C) $0.92 million DJ $1.09 million E) There is not enough information to aniwer this question Amwer 41) What is the equivalent annual annuity (EAA]for Project Grimm? Aj 5-129 million Bj 5-102 million C) $1.02 million DJ $1.29 million [) There is not enough information to aniwer this question Amwer 42) What is the Payback Period for Terra Nova? A| 093 your 81 0.98 year () 1.93 year Dj 3.98 year E) 2.64 year Amwer 43) What is the Discount Payback Period for Terra Nova? Aj 0.93 year 81 0.98 year C) 1.93 year DJ 2.64 year E) 3.98 year Amwer 44) What is the criteria dechion to accept a projed when using Profitability Index? Aj PICO q PIDO DJ P12 1 EJ PID 1 Amwer