1. Carrie D's has 5.9 million shares of common stock outstanding, 2.9 million shares of preferred stock outstanding, and 19.00 thousand bonds. If the common shares are selling for $29.00 per share, the preferred share are selling for $28.90 per share, and the bonds are selling for 108.91 percent of par, what would be the weight used for equity in the computation of Carrie D's WACC?

2.Bill's Boards has 20.8 million shares of common stock outstanding, 4.8 million shares of preferred stock outstanding, and 28.00 thousand bonds. If the common shares are selling for $30.80 per share, the preferred share are selling for $17.80 per share, and the bonds are selling for 95.92 percent of par, what would be the weight used for equity in the computation of Bill's WACC?

3.You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $150,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $15,000. Use of the truck will require an increase in NWC (spare parts inventory) of $4,500. The truck will have no effect on revenues, but it is expected to save the firm $66,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 30 percent. What will the cash flows for this project be during year 2?

4.You are evaluating a product for your company. You estimate the sales price of product to be $270 per unit and sales volume to be 11,700 units in year 1; 26,700 units in year 2; and 6,700 units in year 3. The project has a 3 year life. Variable costs amount to $195 per unit and fixed costs are $217,000 per year. The project requires an initial investment of $375,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $57,000. NWC requirements at the beginning of each year will be approximately 17% of the projected sales during the coming year. The tax rate is 35% and the required return on the project is 10%. What will the year 2 cash flows for this project be?

5.You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $280,000. The truck falls into the MACRS 10-year class, and it will be sold after 10 years for $53,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,300. The truck will have no effect on revenues, but it is expected to save the firm $83,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent. What will the cash flows for this project be during year 3?

6.MC Enterprises estimates that it takes, on average, 10 days for their customers' payments to reach them, 3 day for the payments to be processed and deposited by their bookkeeping department, and 2 more days for the check to clear once they're deposited. What is their collection float?

7.Hollywood Shoes would like to maintain their cash account at a minimum level of $57,000, but expect the standard deviation in net daily cash flows to be $4,700; the effective annual rate on marketable securities to be 6.50 percent per year; and the trading cost per sale or purchase of marketable securities to be $170 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)

8.Suppose that a company's equity is currently selling for $26.75 per share and that there are 4.1 million shares outstanding. If the firm also has 21.0 thousand bonds outstanding, which are selling at 97.5 percent of par, what are the firm's current capital structure weights for equity and debt respectively?

9.Suppose that a company's equity is currently selling for $26.75 per share and that there are 5.90 million shares outstanding. If the firm also has 49 thousand bonds outstanding, which are selling at 110.50 percent of par, what are the firm's current capital structure weights for equity and debt respectively?

10.EN Corp. is expected to pay a dividend of $2.75 per year indefinitely. If the appropriate rate of return on this stock is 10 percent per year, and the stock consistently goes ex-dividend 10 days before dividend payment date, what will be the expected minimum price in light of the dividend payment logistics?