How to answer

12. The reasonable weighted average cost of capital for a firm that has a cost of equity of 12% and before tax cost of debt of 8% where the tax rate is 30% and debt ratio is 50% is a. 11.40% b. 10% C. 9.78% d. 8.80% 13. Fast Charge Inc. purchased a building amounting to Php25,500,000 and is funded by 45% additional equity from the stockholders. Fast Charge has no outstanding long term liability except for the some operational accounts payable. Immediately after the purchase, the company's total long term liability is a, Zero b. Php11,475,000 C. Php 14,025,000 d. Php25,500,000A S D VALUATION CONCEPTS AND METHODOLOGIES 14. Basketball Corp. reported present value of its future cash flows amounting to Php1,450. The company's investment is Php500 for it to operates. The net present value of the company is a Php1,450 b. Php950 C. Php500 Zero 17 Republika Inc has purchased an equipment for