please answer and explainSolutionAnnuity due Annuity due is

please answer and explain

Annuity due: Annuity due is the series of payment which occured at beginning of the period.

Now payment = 1,000

N = 10 years

I (Rate) = 10%

FV = (1 + r) * Payment * ((1 + r)ⁿ - 1)/ rate

FV = (1 + 10%) * 1,000 * ((1 + 10%)¹⁰ - 1)/ 10%

FV = 17,531.17

Option C is correct

18. Price of Stock = 50

Growth rate = 6%

Underwriting fees = 5.5% of stock price

D1 = 3.3

Cost fo Equity = (D1/ P0 * (1 - Floatation Cost)) + Growth Rate

Cost to Equity = (3.3/ 50 * (1 - 5%)) + 6%

Cost to Equity = 12.95%

Option B is correct

19. Weight of Common Stock = 900,000/ 2,000,000

Weight of Common Stock = 0.45

Weight of Preferred Stock = 100,000/ 2,000,000

Weight of Preferred Stock = 0.05

Weight of Debt = 1,000,000/ 2,000,000

Weight of Debt = 0.50

WACC = 0.50 * 6% * (1 - 0.40) + 0.45 * 13% + 0.05 * 10%

WACC = 8.15%

Option C is correct