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FINA Inc. considers a project with the following information: Initial Outlay: 1,500 After-tax cash flows: Year 11-$100 Year 2: $1000 Year 3: 5700 FINA'S assets

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FINA Inc. considers a project with the following information: Initial Outlay: 1,500 After-tax cash flows: Year 11-$100 Year 2: $1000 Year 3: 5700 FINA'S assets are $500 million financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans $ 100 milion borrowed at 10 Bonds: 5180 milion paying on coupon with quarterly payments, and maturity of 5 years. FINA sold its 51.000 par.value bonds for 51.070 and had to incur $20 flotation cost per bond. Preferred Stocks: 520 million paying $15 dividends per share. FINA sold its preferred shares for 5210 and had to incur a $10/share flotation cost. Common Stocks: 5200 million the beta of INA stocks is 1.5. the 90 day Treasury yield is 576, and the return on the market portfolio is 15 %. FINA is subject to a 20% tax rate. Assuming the company uses WACC to compute the present value of the future cash flows, please find the following: 5) What is the WACC? 6) What is the IRR? 7) What is the Payback Period? 8) What is the NPV

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