plese help solve
Using your calculator please determine the NPV, IRR and Payback for this investment. Based on the NPV, should the company go ahead with the project. 7. Using the Capital Asset Pricing Model, CAPM. what is the cost of equity if a company's beta is 1.1. the market risk premium is 7% and the current risk free rate is 5.5%? 8 - You are given the following information regarding your company's debt. There is one current bond issue that matures in 25 vears. The coupon rate is 8%, paid semi-annually. The current price of the bond is $980. What is the company's Yield-to-Maturity (Y-T-M)? 9. After figuring out the YTM in the previous question you are told the corporate tax rate is 25%. Given that tax rate please determine the Cost of Debt. 10 - The same company has preferred stock outstanding. This preferred stock pays an annual dividend of $1.35. The current price of the preferred stock is $27.35. What is the cost of the preferred stock? 11 - The company also has a number of shares outstanding of common stock. The company has been doing well and is expected to pay a dividend of $3.85 next year. Dividends have grown at a constant rate of 5% and the market expects that growth rate to continue. The price of the common stock at yesterday's close was $58.46. Given this information, and using the Dividend Growth Modal, (DGM), what is the cost of common equity? 12 - The capital structure of this company is as follows: $3,586.000 in corporate debt, $1,350,000 in preferred stock and $6,275,000 in common stock. What is the total Capital Structure? Given these numbers, please figure out the weights of debt, preferred stock and common stock. 13 - Now that you have calculated the costs of debt, preferred stock and common stock and found out the weights of the capital structure, please determine the Weighted Average Cost of Capital (WACC) for the company. One hint: remember, you already have figured out the after cost of debt. 14 - You are looking at a possible investment. The following chart shows: the State of the World, the Rate of Return and the Probability that each occurs. Please complete the chart to determine the expected rate of return and the standard deviation of this investment. State of the World (A) Rate of Return (B) Probability (C) Exp. Rate of Return Step 2 (D) (E) Step 3 (F) Recession -63% .08 Below Avg. -11%