Corporate Finance Problems1. Grady spends $98,000 a week to pay bills and maintains a lower cash balance limit of $95,000. The standard deviation of the disbursements is $14,600. The applicable interest rate is 4.8% and the fixed cost of transferring funds is $50. What is the firm's total cost of holding cash based on the BAT model? (Need to show calculations)The following problems need to be answered in 1-3 sentences, and perform calculations as requested.2. Company has a Tobin's Q of 0.96. The replacement cost of the firm's assets is $230,000 and the market value of the firm's debt is $115,000. The firm has 20,000 shares of stock outstanding and a book value per share of $1.93. What is the market to book ratio? 3. Travel agent in advertising a vacation pack for 3 years from now to Antarctica. It requires you to pay $25,000 today, $30,000 one year from today, and a final payment of $45,000 on the day you depart 3 years from today. What is the cost of the vacation in today's dollars if the discount rate is 9.75%?4. Company is considering a project with a discounted payback period just equal to the project's life. The projections include a sales price of $38, variable cost per unit of $18.5, and fixed costs of $32,000. The operating cash flow is $19,700. What is the break-even quantity?5. Over the past 15 years, the common stock of a shop has produced an arithmetic average return of 12.2% and a geometric average return of 11.5%. What is the projected return on this stock for the next 5 years according to Blume's formula?6. A store has a line of credit with a local bank in the amount of $80,000. The loan agreement calls for interest of 7% with a compensating balance of 5%, which is based on the total amount borrowed. The compensating balance will be deposited into an interest-free account. What is the effective interest rate on the loan if the firm needs to borrow $75,000 to cover operating expenses? 7. A store currently sells 345 units a month at a price of $59 a unit. Owner thinks they can increase their sales by an additional 55 units if they switch to a net 30 credit policy. The monthly interest rate is 0.4% and the variable cost per unit is $32. What is the net present value of the proposed credit policy switch?