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Could someone please help me with these 10 questions? Thank you very much!!! 1. Daddi Mac, Inc., doesn't face any taxes and has $305.20 million

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Could someone please help me with these 10 questions? Thank you very much!!!

image text in transcribed 1. Daddi Mac, Inc., doesn't face any taxes and has $305.20 million in assets, currently financed entirely with equity. Equity is worth $30 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: State Probability of state Expected EBIT in state Recession 0.25 $ 6,104,000 Average 0.60 $ 11,826,500 Boom 0.15 $ 18,922,400 The firm is considering switching to a 25-percent-debt capital structure, and has determined that it would have to pay an 9 percent yield on perpetual debt regardless of whether it changes the capital structure. What will be the standard deviation in EPS if the firm switches to the proposed capital structure? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ Standard deviation in EPS 2. HiLo, Inc., doesn't face any taxes and has $255.2 million in assets, currently financed entirely with equity. Equity is worth $15 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: State Probability of state Expected EBIT in state Pessimistic 0.40 $ 1,148,400 Optimistic 0.60 $ 16,332,800 The firm is considering switching to a 25-percent-debt capital structure, and has determined that it would have to pay a 9 percent yield on perpetual debt in either event. What will be the level of expected EPS if the firm switches to the proposed capital structure? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Expected EPS 3. $ MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.45, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $25.20 per share that is not expected to affect any other future dividends, what should the stock price be? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Stock price $ 4. Kenzie Cos. is expected to pay a dividend of $2.35 per year indefinitely. The appropriate rate of return on this stock is 14 percent per year, and the stock consistently goes ex-dividend 35 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.) Minimum stock price $ What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.) Maximum stock price 5. $ Harper's Dog Pens, Inc., with the help of its investment bank, recently issued 8.6 million shares of new stock. The offer price on the stock was $13.10 per share and Harper's received a total of $107.50 million from the stock offering. Calculate the net proceeds per share and the underwriter's spread per share on the stock offering. (Round your answers to 2 decimal places.) Net proceeds Underwriter's spread $ per share $ per share What percentage of the gross proceeds is the investment bank charging Harper's Dog Pens for underwriting the stock issue? (Round your answer to 2 decimal places.) Percent underwriting spread 6. % Zimba Technology Corp. recently went public with an initial public offering of 2.6 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $8.46 per share and the underwriter's spread was 6 percent of the gross proceeds. Zimba also paid legal and other administrative costs of $251,000 for the IPO. Calculate the gross proceeds per share. (Round your answer to 2 decimal places.) Gross proceeds $ per share Calculate the total funds received by Zimba from the sale of the 2.6 million shares of stock. (Enter your answer in millions of dollars rounded to 3 decimal places.) $ Funds received by Zimba 7. m You have approached your local bank for a start-up loan commitment for $390,000 needed to open a computer repair store. You have requested that the term of the loan be one year. Your bank has offered you the following terms: size of loan commitment = $390,000, term = one year, up-front fee = 25 basis points, back-end fee = 45 basis points, and rate on the loan = 9 percent. Assume you immediately take down $164,000 and no more during the year. Calculate the total interest and fees you will pay on this loan commitment. Total interest and fees 8. $ DiPitro's Paint and Wallpaper, Inc., needs to raise $1.10 million to finance plant expansion. In discussions with its investment bank, DiPitro's learns that the bankers recommend a debt issue with gross proceeds of $1,000 per bond and they will charge an underwriter's spread of 5.0 percent of the gross proceeds. How many bonds will DiPitro's Paint and Wallpaper need to sell in order to receive the $1.10 million it needs? (Do not round intermediate calculations and round your final answer to the nearest whole number.) Number of bonds sold 9. bonds Howett Pockett, Inc., plans to issue 10.6 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $35.00 per share and they will charge an underwriter's spread of 8.0 percent of the gross proceeds. In addition, Howett Pockett must pay $4.0 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds per share. (Round your answer to 2 decimal places.) Gross proceeds $ per share Calculate the total funds received by Howett Pockett from the sale of the 10.6 million shares of stock.(Enter your answer in millions of dollars rounded to 3 decimal places.) $ Funds received by Howett Pockett m 10. Casey's One Stop has been approved for a $247,500 loan commitment from its local bank. The bank has offered the following terms: term = one year, up-front fee = 75 basis points, back-end fee = 25 basis points, and rate on the loan = 7.75 percent. Casey's expects to immediately take down $238,000 and no more during the year unless there is some unforeseen need. Calculate the total interest and fees Casey's One Stop can expect to pay on this loan commitment. (Round your answer to 2 decimal places.) Total interest and fees $

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