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QUESTION 7 The expected return on a firm's equity is 9%, and the firm has a yield to maturity on its debt of 5%, Debt

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QUESTION 7 "The expected return on a firm's equity is 9%, and the firm has a yield to maturity on its debt of 5%, Debt accounts for 27%, common equity for 65% and preferred equity for 8% of the firms total market value. If its tax rate is 33%, and the cost of preferred equity is 15%, what is this firm s WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05 : QUESTION 8 "Firm UvW has a face debt value of $55 Million USDS trading at 90% with a pre-tax weighted cost of 6%. Firm UVW's common equity for the year was valued at $80 Million of USDS and preferred equity for \$11 Million of USDS. The Preferred equity rate was calculated to be 1296. However, the common equity was to be calculated using CAPM approach, with a 4.5% risk free rate and a 10%6 market risk premium rate, assuming a Beta of 1.3. If the tax rate is 33%, what is Firm UVW s WACC Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05 QUESTION 9 You founded your firm with a contribution of $600,000, receiving 3,000,000 shares of stock. Since then, you sold 12,000,000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $4,000,000 and would receive 90,000,000 newly issued shares. What is the post-money valuation? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000

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