0 / 1 pts Question 3Calculate the terminal value of the tax shield given the following information. Assume we are calculating it for the next year (that is, assume there is no planning period, just a terminal value). The tax rate is 30%. Debt will be $112 million. Assume debt grows at the same annual rate as the firm which is 2%. The cost of debt is 10% while the cost of equity is 12%. u Answeredu Answered42margin of error +/- 1rrect Answer
0 / 1 pts Question 4Swamp & Sand Industries has the following data. At a discount rate of 7%, calculate its Discounted Cash Flow (DCF) for the years presented. 0 / 1 pts Question 5
For Palm and Sun Industries, calculate depreciation given the following data: Beg Net PPE $1,695, End Net PPE $3,319 Cap Ex $1,791.There were no sales nor liquidations of assets.u Answeredu Answered167margin of error +/- 1rrect Answerrrect AnswerCapex = End Net PPE - Beginning Net PPE + Depreciation Expense0 / 1 pts Question 6Swamp & Sand Industries has the following data. At a discount rate of 12%, calculate its Adjusted Present Value (APV) for 20X1 through 20X3. Interest expense is $5 million per year. The interest rate on debt is 6%. The corporate tax rate is 40%.20X120X220X3FCF198198198Depreciation444
u Answeredu Answered481margin of error +/- 1rrect Answerrrect AnswerAt 12% 3 yrs, the PVA1 = 2.4 So FCF *2.4 = DCF. To find the PVA1 (the present value of a $1 annuity): 1=P/YR 3=N 12=I/YR 1=PMT 0=FV PV=2.4