2.1 You are presented with the below table relating to the probabilities and returns for a...

Transcribed Image Text:

2.1 You are presented with the below table relating to the probabilities and returns for a specific project of a company. The probability of the project high return is 45%, a medium return 33% and a low return 22%. A 1 Return 2 High 3 Medium 4 Low 45 6 B C D E Probability Variable Return based on probability Expected rate of return Deviation based on probability 0.45 0.33 0.22 0.03403125 ? 50% A 30% A 20% A Variance Standard Deviation D B249 REQUIRED: Provide the excel formulas used to calculate the values for a) to d) in the tab Include the result/answer to your formula. 2.2 Calculate WACC of Nexx (Pty) Ltd using the following information. Source % of funding Cost of funding (before tax) Draw-down on current bond 18% 12.60% New bank loan 38% 8% Issue of preference shares 44% 12% The marginal tax rate applicable is 28%. 2.1 You are presented with the below table relating to the probabilities and returns for a specific project of a company. The probability of the project high return is 45%, a medium return 33% and a low return 22%. A 1 Return 2 High 3 Medium 4 Low 45 6 B C D E Probability Variable Return based on probability Expected rate of return Deviation based on probability 0.45 0.33 0.22 0.03403125 ? 50% A 30% A 20% A Variance Standard Deviation D B249 REQUIRED: Provide the excel formulas used to calculate the values for a) to d) in the tab Include the result/answer to your formula. 2.2 Calculate WACC of Nexx (Pty) Ltd using the following information. Source % of funding Cost of funding (before tax) Draw-down on current bond 18% 12.60% New bank loan 38% 8% Issue of preference shares 44% 12% The marginal tax rate applicable is 28%.