Could you please help with attachment.............................

1. Award: 1.66 points In 2013 Caterpillar Inc. had about 645 million shares outstanding. Their book value was $40 per share, and the market price was $82.00 per share. The company's balance sheet shows that the company had $27.5 billion of longterm debt, which was currently selling near par value. a. What was Caterpillar's book debttovalue ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.) Book value b. What was its market debttovalue ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.) Market value c. Which measure should you use to calculate the company's cost of capital? Book value Market value Hints Hint #1 References Worksheet Difficulty: Intermediate Learning Objective: 1301 Calculate a firm's capital structure. 2. Award: 1.66 points Olympic Sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $40 million, a maturity of 15 years, and a yield to maturity of 10%. The coupons are paid annually. The other bond issue has a maturity of 20 years, with coupons also paid annually, and a coupon rate of 10%. The face value of the issue is $45 million, and the issue sells for 95% of par value. The firm's tax rate is 30%. a. What is the beforetax cost of debt for Olympic? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Beforetax cost of debt % b. What is Olympic's aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Aftertax cost of debt % References Worksheet Difficulty: Basic Learning Objective: 1302 Estimate the required rates of return on the securities issued by the firm. 3. Award: 1.66 points Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $7 per share, and sells for $70. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.) Cost of preferred stock % References Worksheet Difficulty: Basic Learning Objective: 1302 Estimate the required rates of return on the securities issued by the firm. 4. Award: 1.66 points Reliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 6% per year for the indefinite future. Its last dividend was $5 per share the stock sold for $40 per share just after the dividend was paid. What is the company's cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity Hints Hint #1 % References Worksheet Difficulty: Basic Learning Objective: 1302 Estimate the required rates of return on the securities issued by the firm. 5. Award: 1.66 points Reactive Industries has the following capital structure. Its corporate tax rate is 35%. Security Debt Preferred stock Common stock Market Value $30 million 30 million 40 million Required Rate of Return 2% 4 8 What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC % Hints Hint #1 References Worksheet Difficulty: Intermediate Learning Objective: 1303 Calculate the weightedaverage cost of capital. 6. Award: 1.70 points Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management plans to maintain debt at 31% of the company's present value, and you believe that at this capital structure the company's debtholders will demand a return of 5% and stockholders will require 12%. The company is forecasting that next year's operating cash flow (depreciation plus profit after tax at 40%) will be $69 million and that investment expenditures will be $31 million. Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by 4% a year. a. What is the total value of Icarus? (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole dollar amount.) Total value $ million b. What is the value of the company's equity? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.) Company's equity $ million References Worksheet Difficulty: Intermediate Learning Objective: 1305 Use the weightedaverage cost of capital to value a business given forecasts of its future cash flows