Question 1 Swirlpool, Inc., has found that its cost of common equity capital is 16 percent, and its cost of debt capital is 9 percent. If the firm is financed with 60 percent common shares and 40 percent debt, then what is the after-tax weighted average cost of capital for Swirlpool if it is subject to a 40 percent marginal tax rate?

Group of answer choices 6.43% 9.64% 11.76% 15.29%

Question 2pts Vanderheiden Inc. is considering two average-risk alternative ways of producing its patented polo shirts. Process S has a cost of $8,000 and will produce net cash flows of $5,000 per year for 2 years. Process L will cost $11,500 and will produce cash flows of $4,000 per year for 4 years. The company has a contract that requires it to produce the shirts for 4 years, but the patent will expire after 4 years, so the shirts will not be produced after 4 years. Inflation is expected to be zero during the next 4 years. If cash inflows occur at the end of each year, and if Vanderheiden's required rate of return is 10 percent, by what amount will the better project increase Vanderheiden's value?

Group of answer choices $1,098.89 $677.69 $1,237.76 $1,179.46 $1,312.31

Question 3 Marley's Pipe Shops has found that its common equity capital shares have a beta equal to 1.84 while the risk-free return is 5 percent and the expected return on the market is 11 percent. Its cost of debt financing is 11 percent. If the firm is financed with $240,000,000 of common equity (market value) and $145,000,000 of debt (market value), then what is the after-tax weighted average cost of capital for Marley's if it is subject to a 40 percent marginal tax rate?

Group of answer choices 11.23% 14.14% 12.48% 13.73%