Compute the net change in cash flow

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1. Compute the net change in Cash Flow given the following information: 12/30/2015 12/30/2016 Accounts Receivable $400 $900 Common Stock $100 $200 Fixed Assets (equipment) $1,000 $1,750 (ignore depreciation) $1,350 decrease $350 decrease $1,150 increase $1,150 decrease

2. ABC Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of common stock is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 30 percent, what is the WACC?

8.700%

6.312%

7.965%

5.246%

Reference no: EM132049494

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