Q1: Purple Corporation has an average cost of capital of 22%. It just bought an investment property that would require a cost to dispose of P450,000. How much is the cost of illiquidity if the company plans to sell the asset 5 years from acquisition date? (Round off PV factors to 4 decimal places)

Q2: Ms. Ga Ling is starting a corporation that would require invested capital of P6,000,000. The estimated weighted average cost of capital will be 9% while the annual earnings will be P700,000. 2. Assuming that the business will operate for only 15 years, how much would the value of the firm be? (Round off PV factors to 4 decimal places)

Q3: Ms. Ga Ling is starting a corporation that would require invested capital of P6,000,000. The estimated weighted average cost of capital will be 9% while the annual earnings will be P700,000. Assuming that the business will continue indefinitely, how much would the value of the firm be?(Round off PV factors to 4 decimal places)

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