1. Given the information provided here, what is this firm's WACC?

coupon rate on bonds = 4.1%

yield to maturity on company bonds = 4.5% recent stock price = $28.70

most recently paid common dividend = $2.21

anticipated growth rate of common dividend = 2.8%

average effective tax rate over past five years = 31%

total liabilities = $310 million

total shareholder's equity = $300 million

no preferred stock

2. Estimates of cash flows and an 11% cost of capital produce an NPV for a project of $237,100. What does this NPV indicate?

3. The table below offers EBIT for a potential capital investment for Fake Company Delta (FCD). The bullet items provide additional information. What is this project's NPV?

The initial investment is $24,000.

Depreciation is straight line over four years.

An additional $1,750 in net working capital is needed right now, but this is 100% recoverable at the end of Year 4.

The company's WACC is estimated to be 11.75%.

Company analysts estimate cash flow from salvage will be $4,000.

Company analysts also estimate erosion costs of $1,900 in Year 1 and $1,500 in Year 2.

The company's tax rate is 27.0%.