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Capital Budgeting and The Cost of Capital QI: Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each

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Capital Budgeting and The Cost of Capital QI: Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follow: Year Sandaler Pro 165.000.000 0.000.000 23.000 4 2.000.000 5 Total 230.0 170.000 Each product requires an investment of $125.000. A rate of 10% has been selected for the net present value analysis A. Calculate the payback period for the two products B. Calculate the net present value for the two products. 02: A company has a mix of financing components as follow Compen West Pred 2016 Equity 2016 If the share of preferred stock has a 5% dividend rate, S100 par valuc, a price of S&8 with a flotation cost of $3 per share Calculate WACC knowing that the tax rate is 30% Capital Budgeting and The Cost of Capital QI: Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follow: Year Sandaler Pro 165.000.000 0.000.000 23.000 4 2.000.000 5 Total 230.0 170.000 Each product requires an investment of $125.000. A rate of 10% has been selected for the net present value analysis A. Calculate the payback period for the two products B. Calculate the net present value for the two products. 02: A company has a mix of financing components as follow Compen West Pred 2016 Equity 2016 If the share of preferred stock has a 5% dividend rate, S100 par valuc, a price of S&8 with a flotation cost of $3 per share Calculate WACC knowing that the tax rate is 30%

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