Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can u pls ans these for me pls... QUESTION 13 Barry Company is considering a project that has the following cash flow and WACC data.

can u pls ans these for me pls... image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
QUESTION 13 Barry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected WACC 9.00% Year 0 1 2 3 4 5 Cash flows -$1,100 $400 $390 $380 $370 $360 a $384.75 Ob $315.50 @ C. $403.99 KD $338 68 e $346 28 QUESTION 14 Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67PO = 540.0 0 and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach? O a. 8.71% b.9.68% Od 9.87% Od 11.61% 9 0094 QUESTION 15 1 Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following informatio n. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1.000, and a market pric e of $1,000,00. (2) The company's tax rate is 25%. (3) The risk-free rate is 4.50% the market risk premium is 5.50%, and the st ock's beta is 1.20 (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CA PM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Do not found you intermediate calculations. a. 8.90% ob 10.32% DA 11.03% O d. 6 769 De 9.32% QUESTION 18 1 4 Simkins Renovations Inc. is considering a project that has the following cash flow data What is the project's IRR? Note that a p roject's projected IRR can be less than the WACC (and even negative), in which case it will be rejected Year 0 2 3 Cash flows $600 $300 $290 $280 $270 a 31.48% b. 36.35% c 26.61% Od 34 08% De 32 45%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Nonfinancial Managers Beginners Handbook For Finance

Authors: Murugesan Ramaswamy

1st Edition

1516973801, 978-1516973804

More Books

Students also viewed these Finance questions

Question

why we face Listening Challenges?

Answered: 1 week ago

Question

what is Listening in Context?

Answered: 1 week ago