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Question 2: Choose the column based on the first letter of your first name and complete the question 2(a) using these figures. Then, choose the
Question 2: Choose the column based on the first letter of your first name and complete the question 2(a) using these figures. Then, choose the column based on the first letter of your surname and complete the question 2(a) using these figures. e.g Name: Ben Lynch, choose column T1.1 form table 1 and column T2.3 from table 2. Table 1 Table 2 T1.1 T1.2 T1.3 T1.4 T1.5 First name starts with: A,B, C, D, E F, G, H, I, |K, L, M, N, O P, Q, R, S,T U, V, W, X, Y, Z (a) 16 12 8 3 2 (b) 0.98 0.82 1.2 1.5 1.7 T2.1 T2.2 T2.3 T2.4 T2.5 Surname starts with: A,B, C, D, E F, G, H, I, K, L, M, N, O P, Q, R, S,T JU, V, W, X, Y, Z (c) 98 102 111 106 89 (d) 5.00% 6.00% 7.00% 8.00% 9.00% 5.26% 5.73% 5.54% 7.14% 10.86% Face Masks Inc's share price is _(a)__and there are 1 million shares outstanding. The company has a beta of_(b)__, the risk-free rate is 2% and the market risk premium is 5%. It has 1 bond outstanding with a face value of $20 million, trading at _(c)_. The coupon on the bonds is _ _(d)__ and they have a yield of _(e)__. The corporate tax rate is 12.5%. (a) What is the firm's WACC? (20 marks) (b) Describe the main long-term sources of finance for a corporation. What are the advantages and disadvantages of each type? (15 Marks)
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