Q 1. Use the information below to determine before-tax cost of debt financing of bond S. The Selling Price of the Bond (P) Number of Years to Maturity (n) Annual Coupon Rate, (paid annually) Par Value Floatation Costs Before -Tax Cost of Debt Financing (%) Bond S $1,065 17 16.48% $1,000 $4.25 ? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator. 2. Leaf It To Us Corporation is considering an expansion project. The necessary equipment could be purchased for $15,956,324 and shipping and installation costs are another $10,680. The project will also require an initial $173,920 investment in net working capital. What is the project’s initial investment outlay? Round the answer to the whole $. 3.Calculate the cost of new common equity financing of stock R using Gordon Model Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Last Year Dividend Growth Rate of Dividends Selling Price of Stock Floatation Costs Cost of Common Equity Stock R $5.00 5.2% $43.34 $3.96 ? 4.Black Hill Inc. sells $100 million worth of 20-year to maturity 13.12% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $981 for each $1,000 bond. What is the before-tax cost of capital for this debt financing? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator. 5.Deep Waters, Inc. is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company’s project. The initial outlay for the project is $416,300. The project will produce the following after-tax cash inflows of Year 1: 150,600 Year 2: 100,200 Year 3: 186,300 Year 4: 164,900 Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator.

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