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I need some help on my Finance questions. The file is attached below. I need it by 11:00 please! 1. Sports Corp has 11.1 million

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I need some help on my Finance questions. The file is attached below. I need it by 11:00 please!

image text in transcribed 1. Sports Corp has 11.1 million shares of common stock outstanding, 6.1 million shares of preferred stock outstanding, and 2.1 million bonds. If the common shares are selling for $26.1 per share, the preferred shares are selling for $13.6 per share, and the bonds are selling for 96.89 percent of par, what would be the weight used for equity in the computation of Sports's WACC? 57.51% 12.03% 33.33% 13.68% 2. TJ Co stock has a beta of 1.54, the current risk-free rate is 5.84 percent, and the expected return on the market is 14.09 percent. What is TJ Co's cost of equity? 21.47% 18.55% 30.69% 27.54% 3. Your firm needs a machine which costs $270,000, and requires $48,000 in maintenance for each year of its 5 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 5year class life category. Assume a tax rate of 35% and a discount rate of 15%. What is the depreciation tax shield for this project in year 5? $31,104 $4,665.60 $20,217.60 $10,886.40 4. You are evaluating a product for your company. You estimate the sales price of product to be $200 per unit and sales volume to be 11,000 units in year 1; 26,000 units in year 2; and 6,000 units in year 3. The project has a 3 year life. Variable costs amount to $125 per unit and fixed costs are $210,000 per year. The project requires an initial investment of $354,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $50,000. NWC requirements at the beginning of each year will be approximately 15% of the projected sales during the coming year. The tax rate is 30% and the required return on the project is 12%. What will the year 2 cash flows for this project be? $803,400 $1,622,000 $1,135,400 $1,253,400 5. Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -20,000 10,000 30,000 1,000 Project B Cash Flow -30,000 10,000 20,000 50,000 Use the discounted payback decision rule to evaluate these projects; which one(s) should be accepted or rejected? accept A, reject B accept neither A nor B accept both A and B reject A, accept B 6. Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -38,000 28,000 48,000 19,000 Project B Cash Flow -48,000 28,000 38,000 68,000 Use the PI decision rule to evaluate these projects; which one(s) should be accepted or rejected? accept both A and B accept neither A nor B reject A, accept B accept A, reject B 7. Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 3 years. Time: 0 1 2 3 4 5 Cash flow: -1,800 200 550 800 675 550 3.37 years, reject 2.37 years, accept 2.37 years, reject 3.37 years, accept 8. Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is 3 years. Time: 0 Cash flow: -1,000 1 2 3 4 5 500 480 400 300 150 4.98 years, reject 2.49 years, accept 2.98 years, accept 3.49 years, reject 9. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -700 90 550 750 750 350 750 Use the PI decision rule to evaluate this project; should it be accepted or rejected? 221.83%, accept -221.00%, reject 2.21%, reject 2.21%, accept 10. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -1,120 60 540 740 740 340 740 Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected? 3.35 years, reject 3.53 years, reject 2.57 years, accept 2.65 years, accept

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