1. An unlevered firm has a cost of capital of 13.8 percent and earnings before interest and taxes of $214,560. Assume the firm borrows $340,000 at an interest rate of 5.85 percent. The applicable tax rate is 30 percent. What is the value of the levered firm?

2. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$4,400 $1,100 $2,300 $1,500 $1,500 $1,300 $1,100 Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Discounted payback years

3. Identify at minimum three (3) involved parties the team recommends as a contributing player in the review of all managed care contracts under consideration. Briefly, support your reasoning for each recommended person to participate in the review.