Please show work! Questions 1, 2, 3, 6 1. Estimate the divisional hurtle rates for each division.

"Please Read the attached Randolph Corporation Case Answer questions 1, 2, 3 and 6. Please show work!Questions 1, 2, 3, 61. Estimate the divisional hurtle rates for each division. Assume that all divisions use a 45 percent debt ratio for this purpose.2. Now assume that, within divisions, projects are identified as being high risk, average risk, or low risk. What hurdle rates would be assigned in those risk categories within each division?3. How comfortable are you with the 1.2 and 0.9 project risk-adjustment factors? Id there a theoretical foundation for the size of these adjustments?6. Do you agree with Kravitz on the capital structure issue? How would your thinking be affected if: (a) each division raised its own debt, that is, if the divisions were set up as wholly subsidiaries which when issued their own debt (in fact, Randolph raises debt capital at the corporate level, and funds are then made available by headquarters to the various divisions); (b) divisions issued their own debt, but the corporation guaranteed the divisional debt; or (c) all debt was issued by the corporation (which is actually the case).Download Attachment: Randolph Corporation Case.pdf