estion:

Calculate the weighted average cost of capital (WACC) for PDI.

E/V80.00%

Cost of equity9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V20.00%

Cost of debt4.00%

Corporate tax rate40.00%

WACC 80% x 9.40%) + [20% x 4% x (1 - 40%)]= 8.00% WACC = (E/V x Re) + ((D/V x Rd) x (1 - T))

*Cost of equityRisk free rate of return + (Beta * Risk premium) = 3% + (1.28 x 5%) 0.094

Givend the above, I cannot get the following:

Sum of FCF PV =?

Terminal value =?

Present value of terminal value =?

Total value of PDI =?

Assumptions

Discount rate ?

Terminal value ?

#3 - 20 points: Consider a 2-person, 2-good economy. Endowments and utility functions are: = (1,2) , u (x, y) = min{c, y} = (3,2) , u(x, y) = xty Draw a carefully labeled Edgeworth box diagram showing: a) endowments b) indifference curves through the endowments c) the set of allocations that both agents prefer to the endowmentsIn the attached diagram, what is the factor endowment ratio for Microland? Graph 5.0 Resource Endowments for Two Countries: Macroland and Microland Total Capital (million units) Macroland Resource Endowment Box 1600 Microland Resource Endowment Box 800 200 400 Total Labor (million Units) Oa. 2 b. 4 c. 6 Od. 8One fundamental difference between social benefitcost analysis (BCA) and financial cash flow analysis is 0 financial analysis incorporates inflation while BCA does not 0 financial analysis takes into account taxes while BCA does not 0 financial analysis uses social discount factor (rate) while BCA uses market interest rate 0 financial analysis uses social values of costs and benefits while BCA uses market values 0 financial analysis takes into account time value of money while BCA does not