please answer question 3,4,5,6,7

they were wrong answers below, so can someone give a detail how to calculate those question, please give enough answers

thanks

that for all questions.

dont have any more information and why i need to make more . i have make a payment every month why i need to pay more....

Jason was recently hired by Freechoice Telecom as a junior budget analysi. He is working for the Venture Capital Division and has been given for capital budgeting projects to evaluate. He mest give his analysis and recommendation to the capotal budgeting committee. Jasce has a B.S. in accounting from CWU (2015) and passed the CPA exam (2017). He has been in public accounting for several years. During that time be eamed an MBA from Seattle U. He would tike to be the CFO of a company someday maybe Freechoice Telecom- and this is an opportunity to get onto that career track and to prove his ability. As Jason looks over the financial data collected, he is trying to make sense of it all. He already has the most difficult part of the analysis complete - the estimation of eahh flows. Through some internet research and application of finance theory, he has also determined the firm's beta. Hert is the intormation that Jason has aceumulated so far, The Capital Budgeting Projects Iie must choose one of the four capital budgeting projects listed below: Table 1 shows the expected after-tax operating cash flows for cach project, All projects are expected to have a 4 vear life. The projects differ in size (the cost of the initial imvesiment), and their cash flow patierms are tifferent. They also differ in risk as indicated in the above table. The capial budget is 520 million and the projects are nutually exclusive. Capital Structures Freechoice Telecom has the following capital structure, which is considcred so be optimal: Debt a0\% Preferred Equity 5% Common Equity 55% 100% Cost of Capital Jason knows that in erder to evaluate the peojects he will have to determine the cost of capital for each of them. He has been eiven the following data, which he believes will be relevart to his task. (4The firm's tax rate is 35% (2) Freechoice Telecom has issued a 9% semi-annual coupen bond with 10 years tene to maturity. The current trading price is $1022. (3) The fim has issued some preferred stock which pays an annual 7.5% dividend of $100 pat value, and the current market price is $89. (4) The firm's ssock is currently selling for 547 per share. Its last dividend (Do) was 52.50 , and dividends are expected to grow at a consant rate of 6.5%. The current risk free return oflered by Treasury secueity is 2.5%, and the makbet portfolio's return is 9.5%. Frecehoice Telecom has a bets of 1.4 . For the bond-yield-plus-risk-premitum approuch, the finm uses a risk premium of 3.3%. (5) The fim adjusts its project WACC for risk by adding 2.5% to the overall WACC for higb-risk projects and subtricting 2.0\% for low-tisk projects. Jason koows that Freechoice Telecom executives have favorod IRR in the past for making their capital budgeting decisioes. His professor at Seattle U, sid NPV was better than IRR. His seatbook says that MIRR is also better than IRR. He is the new kid on the block and must be peepared to defend his focommendations. Fint, however, Jason must finish the analysis and write his report. To belp besin, be has fornulated the following cuections: 1. What is the firm's cost of debe? Tax rate of finm 35% Coupon Rate: 976 Therefore: Cost of debe - Coupen rate of bond ( t - tax rate) =9%(1.0.35)=9%+0.65=5.85% Cestofdebt=5.85% 2. What is the cost of preferred stock for Freechoice Telecem? Dividend = anmual 7.5% of $100 par value =7.5 Cursent market price =589 Therefore: Cost of preferred stock - Dividend/ current market price Cost of preferred stock =8.43% 3. Cest of commen tequity (1) What is the eatimated cast of comion equity using the CAPM approoch? Risk free retum by Tressury security: 2.8% Market portfolio retum: 9.5% Freechoice Telecoen beta: 1.4 Therefore, Cost of equity = Risk free retum + beta (market return-risk freer retum) =2.8%+1.4(9.5%2.8%) =2.8%+1.46.7% =2.8%+9.38% Cost of cquity = 12.18\% using CAPM method. (2) What is the eitimited cast of comunow equity using the DCF approach? Firm stock current market price: 547 Last dividend (D0) was $2.50 and expected to grow at a rate of 6.5%, therefore, D1 will be $2.66 Cost of equity =(D1 icurrent market price) + Growth Rate =(2.66.47)+6.5 =5.7%+6.5% Cost of equity =12.2 using DCF method (3) What is the estmated cast of comman equity weing she band-yield-phes-risk-phemitim appoach? BYPRP = Bond yield + Risk premium =8.67%+3.5%=12.17% Taking the above results: Average cost of common equity =(12.18+12.2+12.17)/3 r=12.18% 4. What is Freechoice Telecom's overall WACC? Therefore WACC =2.34+0.4215+6.689 =9.4cos% High risk WACC =9.4605+2.5=11.9605% Low risk WACC =9.46052=7.4605% 5. Do you think the firm sheuld ase the single overall WACC as the hurdle rate for each of its projects? Explaia. No, the firm should not the single ovenall WACC as the hurdle nate for each of is project. The grojects have different levels of risk, and the company adjasis its project WACC for risk by adding 2.5% to the everall; WACC for high- risk projects and suberacting 2.0% For low- risk projects. Therefore, the conpaey should use adjusted WACC for each projeet to reflect the risk level of each project. 6. What is the WACC for each project? Place your namerical solutions in Table 2. 7. Calculate all relevant capital budgeting measures for each proiect, and place your aumerical soletions in Table 2. QUESTION 6 AND 7: INSERT IN EXCEL FILE 8. Comnsent on the commonly used capital badgetiag measures. What is the underlying cause af ranking conflicts? Which criterion is the best one, asd why? The conmonly used capital budgeting incloded IRR, NVP, profitability lndex (comparing NPV to initias imvestment). Ranking conflicts tend to arise mainly because of magnitude of cash flows and the timing of the cash flows. 9. Which of the projects are unacceptable and why? 10. Rank the projcets that are acceptable according to Jasen's criterion of choice. 11. Which project should Jason recomanend and why? Explain why each of the projects not chosen was rejecied. Instructions 1. Your answers should be Word processed, submitfed via Canvas. 2.Questions 5,8,9, and 11 are discussion questions. 3. Place your numerical solutions in Table 2. 4.Show your steps for calculation ovestions