Need help with finance question! Must show all work.

Q4) Volunteer Fabricators, Inc. (VF) currently has zero debt. It is a zero growth company, and it has the data shown below. Now the company is considering using some debt, moving to the market value capital structure indicated below. The money raised would be used to repurchase stock. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below. EBIT = Growth = Orig cost of equity, rs = New cost of equity = rs Tax rate = $80,000 New Debt/Value = 0% New Equity/Value = 10.00% No. of shares = 11% Price per share = 40% Interest rate = rd = 20% 80% 10,000 $48.00 7.00% Now assume that VF is considering changing from its original zero debt capital structure to a new capital structure with even more debt. This results in changes in the cost of debt and equity, and thus to a new WACC and a new value of operations. Assume VF raises the amount of new debt indicated below and uses the funds to purchase and hold T-bills until it makes the stock repurchase. What is the stock price per share immediately after issuing the debt but prior to the repurchase? Debt/Value = Equity/Value= 40% Value of new debt = 60% New WACC = $213,333 9.00% Multiple choice: a)$50.67 b) $53.33 c) $56.00 d) $58.80 e) $61.74 Q5) Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists of 20% debt and 80% equity, based on market values. (Its D/S ratio is 0.25.) The risk-free rate is 6% and the market risk premium, rM - rRF, is 5%. Currently the company's cost of equity, which is based on the CAPM, is 12% and its tax rate is 40%. What would be Simon's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity? Given Data: Debt Equity Risk free rate Market risk premium Cost of Equity Tax Rate D/S Ratio 20% 80% 6% 5% 12% 40% 25% CAPM Unleavered Beta 11% 1.02 Multiple Choice: a) 13% b) 13.64% c) 14.35% d) 14.72% e) 15.60% Q6) New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NYW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called.The amortization of flotation costs reduces taxes and thus provides an annual cash flow. What will the net increase or decrease in the annual flotation cost tax savings be if refunding takes place? Multiple Choice: a) $6,480 b) $7,200 c) $8,000 d) $8,800 e) $9,680 Q7) New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NYW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. What will the after-tax annual interest savings for NYW be if the refunding takes place? Multiple Choice: a) $664,050 b) $699,000 c) $786,900 d) $845,790 e) $930,369 Q8) New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual intere of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to million. NYW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called.What is the required after-tax refunding invest outlay, i.e., the cash outlay at the time of the refunding? Multiple Choice: a) $5,049,939 b) $5,315,725 c) $5,595,500 d) $5,890,000 e) $6,200,000 . It has been l interest rate mount to $3 g investment