Hi lamlam84, Can you help me out with the attached questions?

QUESTION 1 To finance its ongoing construction project, BowenRoth Inc. will need $5,000,000 of new capital during each of the next 4 years. The firm has a choice of issuing new debt or equity each year as the funds are needed, or issue only debt now and equity later. Its target capital structure is 40% debt and 60% equity, and it wants to be at that structure in 4 years, when the project has been completed. Debt flotation costs for a single debt issue would be 1.6% of the gross debt proceeds. Yearly flotation costs for 4 separate issues of debt would be 3.0% of the gross amount. Ignoring time value effects, how much would the firm save by raising all of the debt now, in a single issue, rather than in 3 separate issues? $117,341 $111,113 $113,381 $119,688 $114,995 QUESTION 2 George Hincapie, financial manager of Green Sea Transport ( GST), has been asked by her boss to review GST's outstanding debt issues for possible bond refunding. Five years ago, GST issued $ 35,000,000 of 8%, 25 year debt. The issue, with semiannual coupons, is currently callable at a premium of 8%, or $80 for each $ 1,000 par value bond. Flotation costs on this issue were 5%, or $ 1,750,000. Volk believes that GST could issue 20 year debt today with a coupon rate of 5%. The firm has placed many issues in the capital markets during the last 10 years, and its debt flotation costs are currently estimated to be 3% of the issue's value. GST's federal plusstate tax rate is 40%. What is the NPV of refunding? $7,148,786 $2,061,500 $2,170,000 $9,318,786 $7,005,810 QUESTION 3 Palmer Company has $5,000,000 of 15year maturity bonds outstanding. Each bond has a maturity value of $1,000, an annual coupon of 12.0%. The bonds can be called at any time with a premium of $50 per bond. If the bonds are called, the company must pay flotation costs of $10 per new refunding bond. Ignore tax considerationsassume that the firm's tax rate is zero. The company's decision of whether to call the bonds depends critically on the current interest rate on newly issued bonds. What is the breakeven interest rate, the rate below which it would be profitable to call in the bonds? 9.57% 10.07% 10.60% 11.16% 11.72%