Financial Management for Food Services Assignment Semester 1 2018-2019 Due in Week 13 GROUP I A wealthy woman just died and left her pet cats the following estate: the next 15 years with the feline estate worth in today's dollars? ear for I. first cash flow today. At a discount rate of 32% what is the 2 Joel owns the following portfolio of securities. What is the beta for the portfolio? (20) BetaPercent of Portfolio Mobil 40% acific Industries ayson Restaurants135 1.20 25% 3. Rogue River, Inc. is considering a project that has an initial after-tax outlay or after-tax through 4 are: $50,000, $60,000, $70,000 and $80,000. Rogue River uses the net present value method and has a discount rate of 1 1%. will Rogue River accept the project? (23) 4. Acme Supply Co. has a new project that will require the company to borrow $3,000.000. Acme has made an agreement with three lenders for the needed financing. First National Bank will give $1,500,000 and wants 10% interest on the loan. Lockup Bank will give $1,000,000 and wants 12% interest on the loan. Southern National Bank will give 500,000 and wants l 3% interest on the loan, what is the weighted average cost of capital for this $3,000,000? (25) 5. ABC Ltd. has the following capital structure, which it thinks is optimal: Debt Preferred Stock Common Equity 20 10 100% Investors expect earnings and dividends to grow at a constant rate of 10% Lid paid a dividend of S3.50 per share last year, and its stock currently sells at a price of $so per share. in the future. ABC ABC can obtain new capital in the following ways: Preferred New preferred stock with a dividend of $10 can be sold to the public at a pric of $80 per share