Question
1.Lindeman's ltd want to expand its factory to take advantage of increased demands for its products. It is proposed that this will cost $100000 and
1.Lindeman's ltd want to expand its factory to take advantage of increased demands for its products. It is proposed that this will cost $100000 and generate after-tax cash inflows of $23500o. For 8 years . You are required to determine Lindeman's payback period.
2.Discuss any three characteristics of long term investment
3.Suppose the ABC company can issue bonds with a face value of $1000, a coupon of rate 5% (paid semi-annually), and 10 years t maturity at $980 per bond .If ABC company marginal tax rate is 30%. What is the cost of debt
4.Discuss the merits and demerits of internal rate of return
5.Suppose plum ltd will raise capital in the proportions; debt 40%, preferred stock 10% and common stock 12%.What is plums weighed average cost of capital if its cost of debt 3.6%.Its cost of preferred stock is 8% and its cost
6.Identify and explain clearly any five factors that determine the capital structure of any firm
7.Why is working capital important to the firm
8.What is capital budgeting and its significance in a firm
9.Expalin the clientele effect
10.What is signaling hypothesis
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