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Could you please help me to solve these problems? Please give me detailed explanations for each of them. [Exercises] 1When a rm has... ' issued

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Could you please help me to solve these problems? Please give me detailed explanations for each of them.

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[Exercises] 1When a rm has... ' issued 18,000 shares of common stock equity of $880,000 18% tax rate debt at a before tax rate of 4,25% in amounts as shown on the balance sheet the rm's beta =1.3 + 10 years U.S. treasuries (rate = 0.78) ' market return = 12,594 Balance sheet 20,000 Accounts payable 10,000 Notes payable Accruals 16,000 Current portion of long'term debt 27,260 Total current liabilities 78,260 Long term debts 568,334 Total liabilities 641,594 (a) How much is the cost of capital utilizing CAPM? (b) How much is the cost of capital utilizing WACC? (Note: Use after'tax value) 1When this rm was thinking these 2 different projects below with an initial required investment of $240,000 for each of them and with anticipated returns below, Project N Project T Year 1 120,000 Year 1 100,000 2 110,000 2 100,000 3 9,000 3 100,000 4 8,000 4 100,000 (c) What is the payback period of each? (d) What is the NPV for each? (Assume the cost of capital you have already computed) (e) Analyze these projects based on (c) and (e)? (f) What is your recommendation going to be if these projects are mutually exclusive or independent? (g) What i_s your recommendations if this firm has unlimited funding or is exercising capital rationing

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