Need answers for question B

Tax rate 30 percent and paid annually

PART B: SHORT PROBLEMS (30 Mark) Problem 1 (12 marks) (al NIT is going to adjust its current buEquity ratio brom 15 to 2. Using the information in the table below, calculate the cost ofequity of NIT after the capital restructure 1.5 I D/E 2 696 6.5% 12% 2 Tak nale 3096 30% (4 marks) 15 x 600 f Wa00 E's 12% 2.5 2.5 6814 4,836 + 2 (4.886 -6.5) 3 = 9.66 ROOM b) NBT Lad plans to invest in a project with three years' life and will finance the initial investment using Im debt plus equity. NBT will repay 3 milion detail the end of each year on is fully repaid. Other important information is provided in the table below. Calculate the adjusted prevent value (APV) of the project (% marks) 39% 1.2 cost of debt Asset beta (unlevered firm beta) Market risk premium Risk free interest rate Free cash flow (unlevered) 45 $3m PART B: SHORT PROBLEMS (30 Mark) Problem 1 (12 marks) (al NIT is going to adjust its current buEquity ratio brom 15 to 2. Using the information in the table below, calculate the cost ofequity of NIT after the capital restructure 1.5 I D/E 2 696 6.5% 12% 2 Tak nale 3096 30% (4 marks) 15 x 600 f Wa00 E's 12% 2.5 2.5 6814 4,836 + 2 (4.886 -6.5) 3 = 9.66 ROOM b) NBT Lad plans to invest in a project with three years' life and will finance the initial investment using Im debt plus equity. NBT will repay 3 milion detail the end of each year on is fully repaid. Other important information is provided in the table below. Calculate the adjusted prevent value (APV) of the project (% marks) 39% 1.2 cost of debt Asset beta (unlevered firm beta) Market risk premium Risk free interest rate Free cash flow (unlevered) 45 $3m