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5. Microsoft (MSFT), a software company, plans to acquire a dairy farm. Current WACC of MSFT is 8% Should MSFT use 8% in evaluating the

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5. Microsoft (MSFT), a software company, plans to acquire a dairy farm. Current WACC of MSFT is 8% Should MSFT use 8% in evaluating the acquisition of the dairy farm Why? Why not? [20 points] . 6. QW Inc. has issued a bond with the following bond characteristics: Face value $1000, Time to maturity-20 years, Coupon rate 8%, Yield-to-Maturity-6 percent, semiannual coupon payments. [25 points] (no partial credit for this question) a. Write down the current bond price formula. (Do not calculate) b. Write down the bond price 2 years from today (Do not calculate) c. What will the bond price be 20 years from today? mb FV 100s TM20 CR 8 d the following information

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