estion:

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

E/V 80.00%

Cost of equity 9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V 20.00%

Cost of debt 4.00%

Corporate tax rate 40.00%

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 equity Risk 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 ?

Question 10 1 pts The three major functions in most businesses are: O operations, marketing, and finance O operations, finance, strategy O strategy, finance, operations O marketing, strategy, accounting O finance, marketing, strategyRead across from the Lease Type column and choose the answer choice which best represents the type of activities le related cash ows are reported as on the statement of cash ows by lessor and lessee: Lease Type a. Operating: Finance f SalesType: h. Operating: Finance f Sales-Type: c. Operating: Finance I Sales-Type: d. Operating: Finance f Sales-Type: Multiple Choice 0 Option d Option a Oponb O Q opt-.0: : O Lessor Operating only Operating only Both Operating and Financing Operating only Operating only Operating only Both Operating and Financing Both Operating and Financing Lessee Operating only Both Operating and Financing Both Operating and Financing Both Operating and Financing Operating only Financing only Both Operating and Financing Operating only A project has the following estimated data: Price = $52 per unit; variable costs = $34 per unit; xed costs = $23,500; required return =12 percent; initial investment = $30,000; life = three years. a. Ignoring the effect of taxes. what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.) c. What is the financial breakeven quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the nancial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a Accounting break-even quantity _ a Cash break-even quantity _ a Financial breakeven quantity _ _ Case Study Company Law A private limited company, Gemstones Pyt Ltd, is engaged in the business of importing and supplying jewelry as wholesalers to local market. Ali, Ahmed, Sara, Faisal and Amir are the directors of the company. The company decided that the market is becoming more competitive so they need to expand their business. To achieve their target they obtained 4 million rupees loan for the local bank. They spent all the money to increase their business. All the directors of the company did not attend the meetings of the company, Ali and Ahmed are the only ones who participate in the meetings actively. At this time Ali contacted with another retailer of jewelry company, Saad who was looking for a reliable supplier. But he doesn't want to deal with Gemstones PVt Ltd because he doesn't like the managing director Ahmed. Ali did not want to miss this great opportunity so he set up his own business and entered into a contract with Saad without telling other directors of the company. All other members were unaware about this deal. After six months Ali resigned from the director's post because the company became insolvent and could not pay interest on its loans. Important points: 1. The company became insolvent due to expansion and was unable to pay the interest on its loans. 2. Saad was a potential customer of Gemstones Put Ltd. Consider the following: 1. Point out the concepts under Company Law underlying the case study. 2. Ali's course of conduct in the light of Company Law aspect. 3. Other director's liability arising in connection with the loan incurred. Could they avoid the liability under any circumstance? 4. Is Ali liable even though he has resigned from the post of the director? 5. Te legal sanding of Ali's own company running alongside Gemstones Pvt Ltd