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I NEED HELP WITH C-E appendix d The financial manager has determined the following schedules for the cost of funds: a. Determine the firm's optimal

I NEED HELP WITH C-E image text in transcribed
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appendix d
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The financial manager has determined the following schedules for the cost of funds: a. Determine the firm's optimal capital structure. Round your answer to two decimal places. The optimal capital structure consists of % debt resulting in the cost of capital equal to %. b. Construct a simple pro forma balance sheet that shows the firm's optimal combination of debt and equity for its current level of assets. Round your answers to the nearest dollar. c. An investment costs $300 and offers annual cash inflows of $63 for six years. Should the firm make the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number. The investment be made since the internal rate of return that is % the cost of capital. assets. Kouno your answers to the nearest oollar. c. An investment costs $300 and offers annual cash inflows of $63 for six years. Should the firm make the investment? Use Appendi? D to answer the question. Round your answer to the nearest whole number. The investment be made since the internal rate of return that is % the cost of capital. d. If the firm makes this additional investment, how should its balance sheet appear? Round your answers to the nearest dollar. e. If the firm is operating with its optimal capital structure and a $300 asset yields 30.0 percent, what return will the stockholders earn on their investment in the asset? Round your answer to two decimal places. % \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time \\ Period \\ (eg. \\ yeai) \end{tabular} & 18 & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 98 & 10% & 12% & 14% & 16% & 18% & 20% & 24% & 28% & 32% & 36% \\ \hline 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 & 0.806 & 0.781 & 0.758 & 0.735 \\ \hline 2 & 1.970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.808 & 1.783 & 1.759 & 1.736 & 1.690 & 1.647 & 1.605 & 1.566 & 1.528 & 1.457 & 1.392 & 1.332 & 1.276 \\ \hline 3 & 2.941 & 2.884 & 2.829 & 2.775 & 2.723 & 2.673 & 2.624 & 2.577 & 2.531 & 2.487 & 2.402 & 2.322 & 2.246 & 2.174 & 2.106 & 1.981 & 1.868 & 1.766 & 1.674 \\ \hline 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.387 & 3.312 & 3.240 & 3.170 & 3.037 & 2.914 & 2.798 & 2.690 & 2.589 & 2.404 & 2.241 & 2.096 & 1.966 \\ \hline 5 & 4.853 & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 4.100 & 3.993 & 3.890 & 3.791 & 3.605 & 3.433 & 3.274 & 3.127 & 2.991 & 2.745 & 2.532 & 2,345 & 2.181 \\ \hline 6 & 5.795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 4.766 & 4.623 & 4.486 & 4.355 & 4. & 3.889 & 3.685 & 3.498 & 3.326 & 3.020 & 2.759 & 2.534 & 2.3 \\ \hline 7 & 6.728 & 6.472 & 6.230 & 6.002 & 5.786 & 5.582 & 5,389 & 5.206 & 5.033 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 & 3.242 & 2.937 & 2.678 & 2.455 \\ \hline 8 & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.971 & 5.747 & 5.535 & 5.335 & 4.968 & 4.639 & 4.344 & 4.078 & 3.837 & 3.421 & 3.076 & 2.786 & 2.540 \\ \hline 9 & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.515 & 6.247 & 5.985 & 5.759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 & 3.566 & 3.184 & 2.868 & 2.603 \\ \hline 10 & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 7.024 & 6.710 & 6.418 & 6.145 & 5.650 & 5.216 & 4.833 & 4.494 & 4.193 & 3.682 & 3.269 & 2.930 & 2.650 \\ \hline 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8.306 & 7.887 & 7.499 & 7.139 & 6.805 & 6.495 & 5.988 & 5.453 & 5.029 & 4.656 & 4 & 3.776 & 3.335 & 2.978 & 2.683 \\ \hline 12 & 11.255 & 10.575 & 9.954 & 9.385 & 8.863 & 8.384 & 7.943 & 7.536 & 7.161 & 6.814 & 6.194 & 5.6 & & 4.793 & 4. & & 3.387 & 3.013 & 2.708 \\ \hline 13 & 12.134 & 11.348 & 10.635 & 9,986 & 9.394 & 8.534 & 8.358 & 7.904 & 7.487 & 7.103 & 6.424 & 5.842 & 5,342 & 4.910 & 4.533 & 3.912 & 3.427 & 3.040 & 2.727 \\ \hline 14 & 13.004 & 12.106 & 11.296 & 10.563 & 9.899 & 9.295 & 8.745 & 8.244 & 7.786 & 7.367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 & 3.962 & 3.459 & 3.061 & 2.740 \\ \hline 15 & 13.865 & 12.849 & 11.938 & 11.118 & 10.380 & 9.712 & 9.108 & 8.559 & 8.060 & 7.606 & 6.811 & 6.142 & 5.575 & 5.092 & 4.675 & 4.001 & 3.483 & 3.076 & 2.750 \\ \hline 16 & 14.718 & 13.5 & 12.561 & 11.652 & 10.8 & 10.1 & 9.447 & 8.851 & 8.312 & 7.824 & 6.974 & & & & 4. & 4. & 3.503 & & 2.7 \\ \hline 17 & 15.562 & 14.292 & 13.166 & 12.166 & 11.274 & 10.477 & 9.763 & 9.122 & 8.544 & 8.002 & 7.120 & 6.373 & & 5.222 & 4.775 & 4. & 3.518 & 3.097 & 2.7 \\ \hline 18 & 16.398 & 314.992 & 13.754 & 12.659 & 11.690 & 10.828 & 10.059 & 9.372 & 8.756 & 8.201 & 7.250 & 6.467 & 5.818 & 5.273 & 4.812 & 4.080 & 3.529 & 3.104 & 2.767 \\ \hline 19 & 17.226 & 15.6 & 14.324 & 13. & 12.085 & & 10.336 & 9.604 & 8.950 & 8.365 & 7.366 & & 5.877 & 5.316 & & 4.097 & 3.539 & 3.109 & 2770 \\ \hline 20 & 18.046 & 516.351 & 14.877 & 13.590 & 12.462 & 11.470 & 10.594 & 9.818 & 9.128 & 8.514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.870 & 4.110 & 3.546 & 3.113 & 2.772 \\ \hline 25 & 22.023 & 19.523 & 17.413 & 15.622 & 14.094 & 12.783 & 11.654 & 10.675 & 9.823 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 & 4.147 & 3.564 & 3.122 & 2.776 \\ \hline 3 & 2 & 322.937 & 600 & 17.292 & 1 & 765 & 4091 & 258 & 74 & 427 & 8.055 & 7.003 & 6.177 & 5.517 & 4.979 & 4.160 & 3.5 & 3.12 & 77 \\ \hline \end{tabular}

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