QUESTION 6 To finance some manufacturing tools It needs for the next 3 years, Waldrop Corporation is considering a leasing arrangement. The tools will be obsolete and worthless after 3 years. The firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. It can borrow $3,600,000, the purchase price, at 10% and buy the tools, or it can make 3 equal end-of-year lease payments of $1,500,000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan, with interest paid at the end of the year. The firm's tax rate is 35M. Annual maintenance costs associated with ownership are estimated at $240,000, but this cost would be borne by the lessor if it leases. (Tip: When working with excel, delete three zeros from the numbers, work in 000) Calculate and fill in the following numbers in thousands (Important Example: if the answer is $144,000, just enter 144 and no dollar sign) In buying decision, annual tax savings on interest would be In buying decision, annual tax savings from depreciation would be In buying decision, annual tax savings from maintenance would be In leasing, annual tax savings on the lease payment would be PV cost of owning is (enter a positive number) in thousands, round to one decimal point (eg for (52,777,777), enter 2777.8) QUESTION 7 The next four questions will be the parts of the same full question on the non-constant dividend discount model Non-constant dividend growth: RGV Cooling Company paid $3.00 per share in common stock dividends last vear. The company's policy is to allow its dividend to grow at 10 percent for 3 years and then the rate of growth changes to 4 percent per year from year four and on. The required rate of return is 9 percent. What is its expected dividend three years from todas (D3)? O 3.00 3.30 3.63 3.99 4.39