Part 1: You plan to buy a house in July 2019. The sale price is $350,000. You need to pay 20% down payments and borrow additional 80% from Wells...

Part 1: You plan to buy a house in July 2019. The sale price is $350,000. You need to pay 20% down payments and borrow additional 80% from Wells Fargo with a traditional 15-year, 3.6% fixed-rate mortgage loan. You are expected to pay an equal MONTHLY payment starting from August 2019 for a total of 15 years.

(1) Calculate your expected monthly mortgage payment.

(2) Develop the 2019~2034 amortization table for your mortgage loan.

(1)   When you prepare 2019 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?

Part 2: A firm is planning a new project that is projected to yield cash flows of - $595,000 in Year 1, $586,000 per year in Years 2 through 5, and $578,000 in Years 6 through 11. This investment will cost the company $2,580,000 today (initial outlay). We assume that the firm's cost of capital is 11%.

(1) Draw a time line to show the cash flows of the project.

(2) Compute the project's payback period, net present value (NPV), profitability index (PI), internal rate of return (IRR), and modified internal rate of return (MIRR).

(3) Discuss whether the project should be taken.

Part 3: Find the 2018 financial statements (Balance Sheet, Income Statement) for a publicly-traded company from UHV Mergent Online database, Yahoo! Finance, Google Finance, or other financial data sources.

(1) Conduct a financial ratio analysis of the company.

(1) Estimate the weights of capital (debt, preferred stock, and common stock) for the company.

(2)  Estimate the before-tax and after-tax component cost of debt for the firm.

(3)  Estimate the component cost of preferred stock (if applicable) for the firm.

(4)  Estimate the component cost of common equity using CAPM for the firm.

(5)  Compute the firm's weighted average cost of capital (WACC). Discuss your findings.