You have been presented with following information from Herman Ltd. Bogus Ltd has an average tax rate of 28% Required: a) Calculate the WACC based on the book value weights. (10 marks) b) Compare the book value and market value method of calculating the WACC above. (2 marks) You have recently been appointed as the inventory manager at Fair Cookies. Fair Cookies buys and sells cookies. The following transactions occurred in the month of September: Because cookies are a perishable product and go off easily, Fair Cookies uses the First in, First out (FIFO) method to value their inventory. Other information Opening inventory (1 September): 150 Cookies purchased at R2.95 each Required a) Calculate the value of the closing stock. (8 Marks) b) Calculate the gross profit by using the First in, First Out method. (14 Marks) You have recently been appointed as the Financial Manager's Assistant of ABC Ltd and you were provided with the following information for project X,Y. The initial investment amount to R342 616 and cost of capital (required rate of return) of 16%. Required; a) Calculate the net present value (NPV) and the profitability index (PI) of the project X,Y. (12 marks) b) Evaluate the project using the NPV and PI, and recommend whether to accept or reject the project. Also indicate the effect of the project to the shareholders. (4 marks)