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Hi there, I have doubts regarding question 5 and 6. Can you help me please? -h]oi1nomjorquesdm55mwrds- iRemotewoMnc Is a startup launched by two 1566's students

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Hi there, I have doubts regarding question 5 and 6. Can you help me please?

image text in transcribed
-h]oi1nomjorquesdm55mwrds- iRemotewoMnc Is a startup launched by two 1566's students during the Could-19 pandemic aimed to provide a wide range of services for employees operating In remove mode. Initial capital was (48,000. The three friends are now looking to alternatives for financing the company and decided to hire your team for financial advisory. liiemoteWoriling's survival depends on the ability to raise at least (30,000 during the next year. At the end at September 2020, the two partners presented a business plan to a large Portugme bank The business plan's viability depends on the proposed loan. The estimated free cash flows to the firm are as follows: (it ELI!) Plhtl mm m 2022 ms ml ms FCFF 42.750 6.150 new sun seam sum Cash ows are asserted to persist from 2025 onwards. Overnight yields are at 41.35% and long-term bonds at 0.15%, both risk-free. Fole the pandemic, analysts estimate an increase in market risk premium to 6.75%. Similar compares have the following forward-looking data: 2.65 4.0" I 5.6" 1.2 2.0% 2.8 4.2% Corporate taxes dropped recently by 45 bps to 30.0%. Consider that Modigliani-Miller's frameworkwithtaaesisvald. 5] Estimate the current equity cost 0f capital lor IRermteWorklng. s) The bani: agrees to lend {some with maturity In 6 years and spread 013.5%, although 11 Imposed two covenants: I} no dividend distribution before full repayment; II) Net Debt 4- EBITDA less than 21 from 2022 onwards. What is IRemoteWorking weighted average cost of capital it this option is accepted

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