USING EXCEL FORMULAS PLEASE ANSWER:

1.Cost of preferred stock: Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $15 per year. If the current price of Fjord preferred shares is $107.14, what is the after-tax cost of preferred shares for Fjord?

2.EBIT: WalkAbout Kangaroo Shoe Stores forecasts that it will sell 9,500 pairs of shoes next year. The firm buys its shoes for $50 per pair from the wholesaler and sells them for $75 per pair. If the firm will incur fixed costs plus depreciation and amortization of $100,000, then what is the percent increase in EBIT if the actual sales next year equal 11,500 pairs of shoes?

3.Cost of common stock: Seerex Wok Co. is expected to pay a dividend of $1.10 one year from today on its common shares. That dividend is expected to increase by 5 percent every year thereafter. If the price of Seerex is $13.75, what is Seerexs cost of common equity?

4.Hathaway, Inc., a resort management company, is refurbishing one of its hotels at a cost of $7.8 million. The firm expects that this will lead to additional cash flows of $1.8 million for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should they go ahead with this project?

5.Cash Flow DOL: The degree of pretax cash flow operating leverage at Rackit Corporation is 2.7 when it sells 100,000 units of its new tennis racket and its EBITDA is $95,000. Ignoring the effects of taxes, what are the fixed costs for Rackit Corporation

6.

Break-even: Calculate the accounting operating profit break-even point and pretax operating cash flow break-even point for each of the production choices outlined below.
Choice	Price	Unit VC	FC	D&A
A	$250.00	$160.00	$15,000.00	$3,000.00
B	$55.00	$10.00	$1,100.00	$200.00
C	$10.00	$1.50	$100.00	$100.00