Accent Marks Please write me a short message, in parenthesis, next to the word that needs it, for instance: You need to write  ¡Mi mamá comprará el juguete mañana para Iván! You will write it like (upside-down exclamation mark) Mi mama (accent on the 2nd a) comprara (accent on the second a) el juguete manana (tilde over the 1st n) para Ivan (accent on a)! Notice that when there is more than one repeated vowel/consonant, I used more details on which vowel/consonant the accent mark was placed–mamá, mañana, etc. Unlike the name “Ivan” which has one accentuated vowel.   Directions In a small English paragraph, please explain how to change a singular Spanish noun ending in the letter “z” into a plural form and provide a Spanish example with the English noun “pencil.” Please translate “pencil” into Spanish to create your Spanish example.

The Herron Company’s cost of common equity is 16 percent, its before-tax cost of debt is 11 percent, and its marginal tax rate is 35 percent.  Given Herron’s market value capital structure below, calculate its WACC. Long-term debt $40,000,000 Common equity   50,000,000 Total capital $90,000,000

Ivey Industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par.  It would sell for $99.80, but flotation costs would be 5 percent of the market price.  What is the percentage cost of preferred stock after taking flotation costs into account?

Ritter Manufacturing can invest in one of two mutually exclusive machines that will make a product it needs for the next 4 years.  Machine C costs $9 million but realizes after-tax inflows of $6.1 million per year for 2 years, after which it must be replaced.  Machine D costs $16 million and realizes after-tax inflows of $6.9 million per year for 4 years.  Based on the firm’s cost of capital of 9 percent, the NPV of Machine D is $6,354,067, with an equivalent annual annuity (EAA) of $1,961,301 per year.  Calculate the EAA of Machine C. Compare your result to that of Machine D and decide which to recommend.

Corbett Industries can invest in one of two mutually exclusive machines that will make a product it needs for the next 8 years.  Machine G costs $10 million but realizes after-tax inflows of $3.1 million per year for 4 years, after which it must be replaced.  Machine H costs $13 million and realizes after-tax inflows of $2.8 million per year for 8 years.  Based on the firm’s cost of capital of 8 percent, the NPV of Machine H is $3,090,589, with an equivalent annual annuity (EAA) of $537,808 per year.  Calculate the EAA of Machine G. Compare your result to that of Machine H and decide which to recommend.

A firm with a 12.5 percent cost of capital is evaluating two projects for this year’s capital budget.  The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$12,000 $5,400 $4,600 $4,000 Project Y: -$11,000 $5,700 $5,700 $5,300 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?

A firm with a 12.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$5,000 $2,300 $2,100 $2,400 $2,300 Calculate the project’s discounted payback period.

A firm with a 13 percent cost of capital is evaluating two projects for this year’s capital budget.  The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$9,000 $4,300 $3,900 $3,000 Project Y: -$11,000 $5,100 $4,800 $5,000 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?

Broussard Industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 11 percent of par.  It would sell for $90.00, but flotation costs would be 5 percent of the market price.  What is the percentage cost of preferred stock after taking flotation costs into account?

A firm with a 12 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$15,000 $6,900 $6,600 $5,600 $7,200 Calculate the project’s payback period.