Please review the information and the questions accordingly. If possible, excel explanation would be desired....

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Please review the information and the questions accordingly. If possible, excel explanation would be desired.

Gemini Corp is a publicly traded corporation, with both its bonds and common equity shares traded in the open market. Gemini estimates its WACC, based on the following financial market situations: Bond market data: The bonds issued by Gemini on average are currently traded (settlement date: May-01-2021) at a price of 94.96 relative to par of 100. with coupon rate of 2.950%. semi-annual coupon frequency, and maturity date is Dec-15-2029; The market value of Gemini's total (long-term) debt" is currently $19.67 Billion. Stock market data: The most-current stock price for Gemini is $50.78 per share: The most-current dividend rate for Gemini is $2.00 per share: The long-term dividend growth rate (next 5-Year, per annum) for Gemini is 3.52% per year: The historical "5-year monthly" market risk "Beta for Gemini is 0.25: The return for US S&P 500 stock market index is 11.64% per year between Years 1928 and 2020; The "risk-free" return for US Treasury-bonds is 5.21% per year between Years 1928 and 2020: The market cap" (i.e., market value of common equity capitalization) for Gemini is currently $24.77 Billion; Gemini has never issued any preferred stocks so far. Applicable federal plus state tax rate: 24%. The US 1928-2020 annual inflation rate: 3.02%. QUESTIONS: 1) What is the best estimate of real-term (deflated) amount of WACC for Gemini Corp? (Note: All financial open-market observations are nominal/inflated only.) 2) Gemini is evaluating an investment project with no extra risk being involved, the initial CFO = -$10,000,000, for the following eight years CF1 through CF8 = +$1.400.000 per year, and all these given CFs are in real purchasing power terms (deflated). What should be the appropriate NPV $ amount of this project to Gemini? 3) Gemini is also evaluating a plan of restructuring its capital, such as, deleveraging: Redeem $10 billion from the existing market value of long-term debt, by publicly offering an extra $10 billion of the market value of common equity. However, as the market supply and demand interact the debt quantity reduction is expected to boost bond price up to 102.35 relative to par of 100. whereas the equity quantity in crease is expected to depress stock price down to $42.82. By how much will this capital restructuring plan, if implemented, affect Gemini 's real-term WACC and the resulting NPV from the said investment project? Is this plan financially desirable? Gemini Corp is a publicly traded corporation, with both its bonds and common equity shares traded in the open market. Gemini estimates its WACC, based on the following financial market situations: Bond market data: The bonds issued by Gemini on average are currently traded (settlement date: May-01-2021) at a price of 94.96 relative to par of 100. with coupon rate of 2.950%. semi-annual coupon frequency, and maturity date is Dec-15-2029; The market value of Gemini's total (long-term) debt" is currently $19.67 Billion. Stock market data: The most-current stock price for Gemini is $50.78 per share: The most-current dividend rate for Gemini is $2.00 per share: The long-term dividend growth rate (next 5-Year, per annum) for Gemini is 3.52% per year: The historical "5-year monthly" market risk "Beta for Gemini is 0.25: The return for US S&P 500 stock market index is 11.64% per year between Years 1928 and 2020; The "risk-free" return for US Treasury-bonds is 5.21% per year between Years 1928 and 2020: The market cap" (i.e., market value of common equity capitalization) for Gemini is currently $24.77 Billion; Gemini has never issued any preferred stocks so far. Applicable federal plus state tax rate: 24%. The US 1928-2020 annual inflation rate: 3.02%. QUESTIONS: 1) What is the best estimate of real-term (deflated) amount of WACC for Gemini Corp? (Note: All financial open-market observations are nominal/inflated only.) 2) Gemini is evaluating an investment project with no extra risk being involved, the initial CFO = -$10,000,000, for the following eight years CF1 through CF8 = +$1.400.000 per year, and all these given CFs are in real purchasing power terms (deflated). What should be the appropriate NPV $ amount of this project to Gemini? 3) Gemini is also evaluating a plan of restructuring its capital, such as, deleveraging: Redeem $10 billion from the existing market value of long-term debt, by publicly offering an extra $10 billion of the market value of common equity. However, as the market supply and demand interact the debt quantity reduction is expected to boost bond price up to 102.35 relative to par of 100. whereas the equity quantity in crease is expected to depress stock price down to $42.82. By how much will this capital restructuring plan, if implemented, affect Gemini 's real-term WACC and the resulting NPV from the said investment project? Is this plan financially desirable

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