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Explain for revisions please Q6. What factors affect the WACC in terms of (1) factors that management ha no control over and (2) factors that

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Explain for revisions please

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Q6. What factors affect the WACC in terms of (1) factors that management ha no control over and (2) factors that management has some control over?Q3. Magic Pan Restaurant Inc.'s average interest rate for all of its Debt outstanding is 7.86%. It's marginal income tax rate is 35%. What is the after- tax cost of its Debt? Q4. Farkington Arms Corp. common stock is trading for $55.00 per share, and it expects to pay a dividend this year of $3.60 per share. Management expects it can grow the dividend by 4.00% per year for the foreseeable future. If the company sells any new shares of stock, the underwriters' commission would average $3.85 per share. What is the expected cost to the company for its common stock on a newly-issued basis? Q5. What are the two basic reasons why the Weighted Average Cost of Capital is an important measurement for management to know?Q2. Craftmaker Tools Company sells a wide assortment of tools for plumbers and painters through 8 retail stores located in Illinois. Because of net losses in the past few years, the company has not been an income tax payer. It currently has $20 million of Debt outstanding and $15 million of Equity capital outstanding in its capital structure. It's Cost of Debt currently is 8.75% and it has a Cost of Equity of 30%. What would be the change in its weighted average cost of capital ("WACC") if it becomes an income tax payer and its marginal income tax rate increases to 39%? Calculate to 4 decimal places

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