Discuss in Detail these questions after looking at the solved questions above: 1- Which one of these problems was the most difficult? What made the problem difficult?

2- Perhaps you had issues with the same problem? What helped you?

3-What suggestions do you have for the problem they had an issue with? Can you explain it to them?

4- What questions do you have for your professor and classmates regarding this problem set?

A firm has the following capital structure. The corporate tax rate is 21%. Determine the after-tax weighted average cost of capital for the firm. 7.93% 9.97% 10.04% 4.86% You have a project that will involve the purchase of real estate and renovation of the real estate. Your analysis indicated the project should have an IRR of 10%. Financing will consist of a mortgage (debt) of $90,000 which represents 70% of the financing. The pretax cost of debt is estimated to 8.5%. The remaining proportion of the financing will come from selling shares of your stock portfolio. Historically, your return has been 11%. Your marginal tax rate is 21%. Should you pursue the project and what is the WACC? Yes, the WACC is 8.001% and is less than the IRR of 10%. Yes, the WACC is 9.25% and is less than the IRR of 10%. Yes, the WACC is 7.308% and is less that the IRR of 10%