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Ans Company A
Company | Market Cost of Debt | Tax Bracket | After Tax Cost = Market Cost of Debt * (1 - Tax Bracket) |
A | 10% | 0.35 | 6.50% |
B | 9% | 0.2 | 7.20% |
C | 12% | 0.28 | 8.64% |
Show work and answer correctly for thumbs up! Which of the following companies has the lowest...
Show work and answer correctly for thumbs up! What is the WACC of a company with the following capitalization. The company is in the 33% tax bracket, and floatation costs add 1.2% from the firm's perspective. Allocation Market Cost/ Expected Return Debt 5.5% 0.3 0.4 9.4% Retained Earnings Common Stock (new issue) 10.6% O 7.69% 08.05% O Not enough information
Show work and answer correctly for thumbs up! Which of the following project assessment methods would be best for evaluating the liquidity of a project? O MIRR O payback method ONPV O IRR
Show work and answer correctly for thumbs up! The required return on retained earnings is 13%. The risk free rate is 2% and the Market Return is 9.5%. What is the company's beta? (hint: consider the CAPM) 0.47 O Cannot tell O 1.47 1.73
Show work and answer correctly for thumbs up! NPV ensures that: we generate cash the most efficiently for our investors O we choose the greatest wealth creating opportunity for our investors Owe minimize the time to get wealthy for our investors o we choose the lowest risk opportunity for our investors
Show work and answer correctly for thumbs up! For an initial investment of $10,000, you are offered the opportunity to receive $4,000 at the end of the year for the next 10 years. What is the irr of this opportunity? $16,840 o need to know the cost of capital O 38.45% O 8%
Show work and answer correctly for thumbs up! What is the present value of a $2000, 10 year, annual ordinary annuity at a 4% annual discount rate (round to nearest dollar) 1351 18,422 O 16,222 O 249,122
Show work and answer correctly for thumbs up! Set this up carefully. You found a 2009 Toyota 4-Runner on sale for $22,311. The dealership says it will finance the entire amount with a one year loan. You will need to make monthly payments of $1,924. What is the ANNUALIZED interest rate on this loan. 8.6% O.97% 0.53% 6.37%
Show work and answer correctly for thumbs up! Set this up carefully. You found a 2009 Toyota 4-Runner on sale for $22,311. The dealership says it will finance the entire amount with a one year loan. You will need to make monthly payments of $1,924. What is the ANNUALIZED interest rate on this loan. 8.6% .97% 53% 6.37%
This is a multi part problem. Please answer each part correctly with work for thumbs up! Thanks! Part 1 Determine the value of V, in the network in the figure. Ο + 93 ΚΩ 59 ΚΩ 1 ΚΩ 21 ΚΩs ξ 58 ΚΩ V, 17ν Ενα First let's perform a delta to wye transformation. Using this new drawing, find: R1, R2, R3, R4, R5. R, Io Ο + Ra} ξ Rς και m 1. O + R33 3R5 Vo (...
Show work and answer correctly for thumbs up! You use an Annuity Due approach to investing in your retirement. For the next 40 years, you invest $8500 per year into your retirement account where you will receive an 8% annual return. How much will you have in 40 years? (round to the nearest dollar) It depends on your Beta 2,201,980 2,378,139 340,000