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Use the following information to answer the next 1 3 questions: Question 2 2 Taggart Transcontinental has an equity cost of capital of 1 2

Use the following information to answer the next 13 questions:
Question 22
Taggart Transcontinental has an equity cost of capital of 12%, a market capitalization of $15 billion, an enterprise value of 520 bilion, a debt cost of capital of 7%, and a marginal tax rate of 25%. Assume that Taggart Transcontinental maintains a constant debt-equity ratio. Currently Taggart Transcontinental is considering a project with average risk that is projected to generate the following cash flows:
Year 0/ IFCG -350
Year 1/ ifcc 200
Year 2/ ifcc 300
Year 3/250
Question 22
Taggart Transcontinental's weighted average cost of capital is closest to?
18.32%
10.31%
10.14%
10.75%
9.44%
Question 23
The levered value (V, not NPV) of Taggart Transcontinental's project in year two is closest to?
226.63
477.40
223.21
250.00
474.70
Question 24
The levered value (V, not NPV) of Taggart Transcontinental & project in year one is closest to?
259.21
477,40
474.70
609.21
550.00
Question 25
The levered value (V, not NPV) of Taggart Transcontinental's project in year zero is closest to?
562.50
259.21
614.07
609.21
460.55
Question 26
Taggart Transcontinental's unlevered cost of capital (ru) is closest to?
10.75%
7.00%
9.00%
10.31%
12.00%
Question 27
The unlevered value (Vu) of Taggart Transcontinental's project in year zero is closest to?
609.21614.07
562.50
259.21
460.55
Question 28
The initial debt capacity of the project in year zero is closest to ?
214.92
150.30
460.55
153.52
456.91
Question 29
The interest expense generated by the project in year one is closest to?
8.06
8.35
10.75
15.83
12.38
Question 30
The interest tax shield generated by the project in year two is closest to?
2.09
0.99
6.27
2.97
8.35
Question 31
The present value in year zero of all of the interest tax shields generated by the project is closest to?
4.86
14.58
5.14
4.54
5.38
Question 32
The Free Cast Flow to Equity FCFE in year zero for the project is closest to?
-153.52
-350.00
+153.52
0.00
-196.48
Question 33
The Free Cash Flow to Equity (FCFE) in year two for the project is closest to?
368.96
362.59
237.31
243.57
231.04
Question 34
Using the Flow to Equity Method, the NPV for the project is closest to?
278.22
274.48
254.07
139.37
124.86

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