Individual Homework 1) iX USA had EPS of $3 last year. Investment in fixed capital was $1.50/share, depreciation was $1/share and investment in working capital was $0.75/share. The company had a target debt to equity ratio of 50%. The company's cost of equity is 15% and the expected growth rate is 5%. Calculate the implied prevailing share price? 2) The following information relates to iX Remote Inc: o Capital Structure: Amount Required return before tax 8% Preferred Stock $100m Bonds $500m 10% Common Stock $600m 15% bonds are trading at par whilst the Preferred Stock recently paid a dividend of $10m. Net profit after tax and payments of Pref dividends $120m Investment in Working Capital $25m $50m Investment in Fixed Capital Net Borrowings received Depreciation $20m $30m Tax rate $30% 5% Long term growth rate of FCFF A. Calculate the WACC B. Calculate the FCFF C. Calculate the value of iX Remote Inc. using a single-stage FCFF model D. Calculate the value of iX Remote Inc's equity using the single-stage FCFF model