1. A firm has a debt-to-equity ratio of 1/4. The WACC is 18.6%, and the pretax cost of debt is 9.4%. What is the cost of common equity if the tax rate is 34%?
2. What are the alternative use of cash and bank balance with Infosys? In your answer you should come up with at least five alternatives.
3. An entrepreneur invests in his dream business of selling golf-carts. The initial investment is $221,000.00. The entrepreneur expects to generate an annual after-tax cash flow of $54,153.00 in running this business. How long before the project will pay back?