A Find 43. Replace Change Select Styles BSB1525 QPMini Case (2) - Microsoft Word Table Tools Home Insert Page Layout References Mailings Review View Design Layout Cut Times New Roman 12 AN FETT 21 | ! - Copy Paste Format Painter BI U - sbe x, x' Aa Clipboard Font Paragraph Week No:_10_ Trimester Pod/3AY 2020-2021 BSBI525- FINANCIAL MANAGEMENT Mini Case NO._01_ COURSE COOP TASRISE COURSE TITLE Financial Management SECTION FFF TIME AS THE ROOM MW STUDENT NAME DATE Editing AaBbCcAaBb C AaBbCcl AaBbCI ABDCD AaBbCcI AaBb c] Emphasis Heading 1 Heading 3 Normal 1 Normal Te.. ga-interacti.. 1 . Strong Styles Week No10_ Trimester 1 2nd/3. AY 2020-2021 BSBI525- FINANCIAL MANAGEMENT Mini Case No. 01 COURSE CODE R$1575 COURSE TIE Financial Management SECTION TIHF DUYS THE ROON w STICENTRINE DATE MARKS HARES TOPIC Cost of capital ASSIGNMENT DIRECTION NHD Company interested in measuringita al cator capital Current investigation REQUIREMENTS has palhered the folown data. The company is in a 40% tak bracket | MUp the hite De assesseders Dell Them canaise debt by selling 51,000 par-value, 8% Coupon interesirale, 20- end of code year bonds on with annual livereel payment wil be made. To se sve, an average discount of $3D per bond would have to be given to investors. The company Brudhurunu mul pasionul 30 per bond murky a Preferred Stock The company can sellas preferred stock at 595 per hare value Hexylear. The cost of issuing and seling preferred to speed to 3500 per share Common Stock The company's common stock is currently selling for 90 pershare. The fimm para to pay cash dividends cf 87 00 PASHA NRC YARI Tenis dividends have been growing an annual rate of 6%, and this growth is expeded to continuino the future. The stock must be underpriced by ST.00 per share, and Flotation costs are expeded amount 50 per share Kalunders when measuring the cost the lum does not concomitsell with the tax bracket or brokerage fees of owners. It expects to have available 5100 000 of reland minge in the coming once these reland ning exhausted, the Tim will common stock as the form of common stock city finding 01 Dalculate the specific cost of cach source of financing 02-The firm www madini ing is grad average cast of capital are shown in the table below. source of Cape Weigh Longime 24 Prelorod EBER 3 Oommon clock ily 5366 Tala TE 100 03-Using the results of all along with the information shown in tellunya on the salable investment opportunes draw the firm's weighted marginal cost of capula (MCC) eduldinvenopoules seules on the same sel of axes Total new financing or investment on the x axis and weighted average cost of capital and on the y ads. ternal Investment made of rem Opportunity ARRO intment 119 $ 200 000 9.56 $ 300 00D 12.9 $ 250.000 $ 16.5 $ 400,000 110 $ 550.000 10.1 S800,000 G 10.5 5 300 000 Q. Which, If any of the swalable investments do you recommend that their accept? 04. Explain your answer. How much talnewsong is recured? ASSIGNMENT OUTPUT Calculate the single broak pont associated with the firm's financial situation. Hint this pointcouts from chauction of the firm's retained camings) - Calche weighted average ont of carital social with total new financing be ow the break point calculated in par(1) - Cao. the weighted average mat of capital asociated with total new financing above the break point and in part (1) = [ E DE 60% Words: 557 : 1:1 Er"/-/- E .. ? 2 45 O
