Please solve the six questions in about an hour by opening the attached file. thanks very much. its urgent
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Please solve the six questions in about an hour by opening the attached file. thanks very much. its urgent. ATTACHMENT PREVIEW Download attachmentQuestion 2.2.(TCO A) Sole proprietorships have all of the following advantages except(Points : 5)easy to set up.single taxation of income.limited liability.ownership and control are not separated.Question 3.3.(TCO B) Which of the following would cause the present value of an annuity toincrease?(Points : 5)Reducing the number of payments.Increasing the interest rate.Decreasing the interest rate.Decreasing the liquidity of the payments.Question 6.6.(TCO D) A stock has just paid a dividend and will pay a dividend of $3.00 in a year. Thedividend will stay constant for the rest of time. The return on equity for similar stocks is 14%. What isP0?(Points : 20)
View the AnswerQuestion 9.9.(TCO D) A bond currently sells for $1,030 even though it has a par of $1,000. It was issuedtwo years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments aremade semiannually. What is its YTM?(Points : 10)Question 11.11.(TCO E) A company has 100 million shares outstanding trading for $8 per share. It alsohas $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%,and its effective corporate tax rate is 40%, what is its weighted average cost of capital?(Points : 30)
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