please assume there is no XYZ. Will thumbs up for sure. Thanks

Suppose that APM Mods, the market expected return 876, the market's standard deviation is 20%, and the risk-free rate is 1%. Firm A is all-equity financed and its stock has a beta of 1.2. The firm has existing assets that generate earnings per share of $5 per year, which are expected to remain constant if the firm does not invest. Currently, the firm has 100,000 shares outstanding and all earnings are paid out as dividends. Next year, the firm has the opportunity to invest in a new project: a launch of a new product. The equipment needed for the project will cost $620,000 (incurred one year from now), have a four-year life, and have no salvage value; depreciation is at a CCA rate of 20%. The company has spent $10,000 on a marketing study that evaluated product demand. Expected sales for the project will start materializing two years from now. Sales are projected at 50+ XYZ units per year in each of the four years of the project life, price per unit will be $8,000, variable cost per unit will be $5,400, and fixed costs will be $210,000 per year. The relevant tax rate is 35%. Assets will remain in the CCA class after the end of the project. Because the new project is similar to the firm's main line of business, the beta of the new project is assumed to be equal to the beta of firm's stock. Note: XYZ refers to the last three digits of your student number. For example, if the last three digits of your student number are 128, then the number of units sold per year in this question is 50+129=173 (a) What is the stock price of the company if it does not undertake the new project? (b) What is the stock price of the company if it undertakes the new project? Should the company go forward with the project? (c) What must the project's annual gross profit (sales revenue minus cost of goods sold) be for the company to be indifferent between accepting or rejecting it? (d) In the year that just ended, another firm, firm B, reported earnings per share of $3. For the next five years, the return on equity (ROE) for this firm be 15% and the payout ratio will be 0.1. After year 5, the ROE will drop to 6% and the payout ratio will increase to 0.4. Based on its amount of systematic risk, firm Bis as risky as the market. What is the stock value per share for firm B today? (e) Firm B currently sells 4,500 units of its product collection each year at a price per unit of $50+XYZ. All sales are on credit with terms of 2/10, net 30. What is the total amount of the company's accounts receivable if the discount is taken by 40% of the customers? If the firm increases the cash discount, how will this affect accounts receivable? Explain. Note: As before, XYZ refers to the last three digits of your student number Suppose that APM Mods, the market expected return 876, the market's standard deviation is 20%, and the risk-free rate is 1%. Firm A is all-equity financed and its stock has a beta of 1.2. The firm has existing assets that generate earnings per share of $5 per year, which are expected to remain constant if the firm does not invest. Currently, the firm has 100,000 shares outstanding and all earnings are paid out as dividends. Next year, the firm has the opportunity to invest in a new project: a launch of a new product. The equipment needed for the project will cost $620,000 (incurred one year from now), have a four-year life, and have no salvage value; depreciation is at a CCA rate of 20%. The company has spent $10,000 on a marketing study that evaluated product demand. Expected sales for the project will start materializing two years from now. Sales are projected at 50+ XYZ units per year in each of the four years of the project life, price per unit will be $8,000, variable cost per unit will be $5,400, and fixed costs will be $210,000 per year. The relevant tax rate is 35%. Assets will remain in the CCA class after the end of the project. Because the new project is similar to the firm's main line of business, the beta of the new project is assumed to be equal to the beta of firm's stock. Note: XYZ refers to the last three digits of your student number. For example, if the last three digits of your student number are 128, then the number of units sold per year in this question is 50+129=173 (a) What is the stock price of the company if it does not undertake the new project? (b) What is the stock price of the company if it undertakes the new project? Should the company go forward with the project? (c) What must the project's annual gross profit (sales revenue minus cost of goods sold) be for the company to be indifferent between accepting or rejecting it? (d) In the year that just ended, another firm, firm B, reported earnings per share of $3. For the next five years, the return on equity (ROE) for this firm be 15% and the payout ratio will be 0.1. After year 5, the ROE will drop to 6% and the payout ratio will increase to 0.4. Based on its amount of systematic risk, firm Bis as risky as the market. What is the stock value per share for firm B today? (e) Firm B currently sells 4,500 units of its product collection each year at a price per unit of $50+XYZ. All sales are on credit with terms of 2/10, net 30. What is the total amount of the company's accounts receivable if the discount is taken by 40% of the customers? If the firm increases the cash discount, how will this affect accounts receivable? Explain. Note: As before, XYZ refers to the last three digits of your student number