I need help answering the following questions:

Please exaplain how you got the answers so i can further understand better.

Question 1.)

For the Investment shown in the following table, calculate the rate of return earned over the specified time period.

Cash Flow During Period | Beginning of Period Value | End of Period Value

$3,450 $22,400 $26,300

Question 2.)

Sadie Mitchell is interested in buying a new car. She has decided to borrow the money to pay the $25,000 purchase price of the car. She is in the 25% federal income tax bracket. She can either borrow the money at an interest rate of 7% from the car dealership, or she could take out a second mortgage on her home. That mortgage would come with an interest rate of 8%. Interest payments on the mortgage would be tax deductible for Sadie, but interest payments on the loan from the car dealership could not be deducted on Sadie's federal tax return.

A. Calculate the after-tax cost of borrowing from the car dealership.

B. Calculate the after-tax cost of borrowing through a second mortgage.

C. Which source of borrowing is less costly for Sadie?

Question 3.)

A firm raises capital by selling $35,000 worth of the debt with flotation costs equal to 1% of its par value. If the debt matures in 10 years and has an annual coupon rate of 9%, what is the bond's yield to maturity (YTM)?

Question 4.)

Marshall Brothers, LLC is considering a capital expenditure that requires an initial investment of $49,000 and returns after-tax cash inflows of $9,456 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.

A. Determine the payback period for this project.

B. Should the company accept the project? Why?

Question 5.)

Using a cost of capital of 16%, calculate the net present value (NPV) for the project shown in the following table and indicate whether it is acceptable.

Initial Investment: $32,500

Year | Cash inflows

1 $10,000

2 $9,000

3 $8,000

4 $7,000

5 $6,000

6 $5,000

7 $4,000

8 $3,000

9 $2,000

10 $1,000

A. The NPV of the project is:

B. Is the project acceptable?

Question 6.)

A few years ago, Browning Industries implemented inventory auditing system at an installed cost of $175,000. Since then, it has taken depreciation deductions totaling $124,250. What is the systems current book value? If Browning sold the system for $105,000, how much recaptured depreciation would result?

Question 7.)

Edison Systems has estimated the cash flows over the 5-year lives for two projects, A and B. These cash flows are summarized in the table below.

Project A | Project B

Initial Investment: $40,080 $11,100

Year | Operating Cash Flows

1 $10,400 $5,400

2 $11,200 $5,400

3 $13,100 $5,400

4 $15,200 $5,400

5 $10,700 $5,400

-After-tax inflow expected from liquidation

A. If Project A were actually a replacement for Project B and if the $11,100 initial investment shown for Project B were the after-tax cash inflow expected from liquidating it, what would be the relevant cash flows for this replacement?

B. How can an expansion decision such as Project A be viewed as a special form of a replacement decision? Explain?

Question 8.)

Kate Rowland wishes to estimate the number of flower arrangements she must sell at $24.91 to break event. She has estimated fixed operating costs of $12,060 per year and variable operating costs of $15.56 per arrangement. How many flower arrangements must Kate sell to break even on operating costs?

Question 9.)

Daniel Williams is considering opening a video store. He wants to estimate the number of DVDs he must sell to break even. The DVDs will be sold for $14.43 each, variable operating costs are $10.42 per DVD, and annual fixed operating costs are $74,000.

A. Find the operating breakeven point in number of DVDs.

B. Calculate the total operating costs at the breakeven volume in (a).

C. If Daniel estimates that at a minimum he can sell 2,100 DVDs per month, should he go into the video business?

D. How much EBIT will Daniel realize if he sells the minimum 2,100 DVDs per month?

Question 10.)

Charlene's Cafe, Inc. has declared a dividend of $1.30 per share for shareholders of record on Tuesday, May 2. The firm has 200,000 shares outstanding and will pay the dividend on May 24. How much cash will be needed to pay the dividend? When will the stock begin selling ex-dividend?

Question 11.)

The board of Kopi Industries is considering a new dividend policy that would set dividends at 60% of earnings. The recent past has witnessed earning per share (EPS) and dividends paid per share are below.

Year | EPS | Dividend

2012 $1.75 $0.95

2013 $1.95 $1.20

2014 $2.05 $1.25

2015 $2.25 $1.30

A. Calculate the dividend payout ratios for each year in the table.

B. Based on the historical dividend payout ratios for (a), would a constant payout ratio of 60% be suitable for the firm?

Question 12.)

Growth Industries' current stockholders equity account is as follows:

Preferred Stock: $400,000

Common Stock (600,000 share at $1 par): $600,000

Paid-in Capital in excess of par: $200,000

Retained earnings: $800,000

Total stockholders' equity = $2,000,000

Indicate the new par value and number of shares outstanding based on the decisions below.

A. a 2-for-1 stock split

B. a 3-for-1 stock split

C. a 6-for-1 stock split

D. a 1 for 4 reverse stock split