The Orange Corporation has to make a decision as to which of four investment proposals it should pursue. The four projects have the following NPVs and initial investment amounts: Project A: NPV = 1,000, initial investment = -100 Project B: NPV = 2,400, initial investment = -300 Project C: NPV = 750, initial investment = -83 The firm has limited funds available to spend on capital projects this year. How would you rank these projects in terms of their priority? A, C, B B, C, A A, B, C B, A, C

Optimist Company can sell common shares at $30 per share and can obtain debt funding at 8 percent. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm’s beta is 0.9. It has a targeted debt-to-equity ratio of 1:1. What is its after-tax cost of debt?

Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. What is the payback period of this project?

After viewing the video from CFI (with link below) which shows how to calculate the WACC for Brick and Mortar Co, answer the following questions. CFI – Weighted Average Cost of Capital.In the video a tax rate of 30% was used. Redo the calculation with a tax rate of 15%. If the WACC is the total combination of cost of equity and cost of debt, which of these two components does the reduced tax rate affect and show if that component of the WACC increase or decrease with the reduction of the tax rate to 15%. Based on this calculation explain what happens when the tax rate is reduced to the cost of capital.

The following video is needed for Question 10.What is preferred stock – https://www.youtube.com/embed/MEMMVBJuJ7sComplete the following table which compares the 3 financial instruments bonds, preferred stock and common stock:

If a preferred share of stock pays dividends of $2.50 per year and the required rate of return for the stock is 6%, what is its intrinsic value?

What is a random walk in the context of stock prices? Use a graph to demonstrate your answer. Your answer should be no more than 150 words.The following videos are needed for Questions 7,8 and 9.Efficient Markets – https://www.youtube.com/embed/L6zk0E6YApwEfficient Market Theory https://www.youtube.com/watch?v=BNLPHZjY0pc 

Complete the following statements by adding the missing words or selecting the correct option between the 2 alternatives presented as (X/X):One of the most important benefits of using comparative P/E ratios is that they can ________ stocks with different prices and various earnings levels.The P/B ratio does not work well for companies that primarily consist of ___________ assets such as __________.The two-stage DDM approach might be used to value a firm and its stock that experiences two stages of growth. These are a period of higher/lower growth and subsequently a period of higher/lower growth.A major shortcoming of the zero growth DDM model is that the model assumes a constant/growing dividend.The required inputs for the discounted cash flow (DCF) model are: historical/future cash flow amounts for the period analyzed; an estimated historical/future value that will result from the sale of the stock or asset; a discount rate to discount future cash flows to the present/future time.Features of preferred stock are a dividend paid out to stockholders before/after dividends are paid to common stockholders and priority/subordinate claim to assets before common stockholders. Operational efficiency refers to the _____  and _______ of processing a buy or sell order at the best available price. Computerized trading systems such as the Universal Trading Platform used on the Nasdaq, are designed to facilitate high transaction ________ and __________.___________ refers to how quickly a source reflects comprehensive information in the available trading prices.A price is efficient if the market has used all available information to set it implying that the stock always trades at a fair/inflated/deflated value.

An investor has developed projections for an investment that will generate the following stream of future cash flows: Yr1 = 50, Yr2 = 60, Yr3 = 75, Yr4 = 80, Yr5 = 90. She believes that she can invest her money at 10 percent annually. How much will she have accumulated by the fifth year of this investment? 421.82 363.21 287.82 315.91

Part 1View the video Bond Pricing, Valuations and Functions at the link below:https://www.youtube.com/embed/tJLR3se4Pa4Complete the missing values in table below using the Excel functions: NPER, PMT, FV, RATE, PV. In Excel leave the PV as a negative number and remember to specify FV (par value) and type parameter (set to 0 for end of period payments) even though they are optional in the Excel formula. Work to 5 decimal places in Excel.Part 2Suppose you are a financial adviser to a young couple that has just married. They are looking to invest the money they were gifted by friends and family on the occasion of their marriage. You can offer them any of the bonds, from Bond B to Bond F, in the above table. Which bond would you recommend for them and why? Remember to include in your answer the trade-off between the different features of these bonds – such as size of coupon, years to maturity and any other relevant features from the table.Your answer should be no more than 300 words.