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Hello! I need help with the following problem for my finance course! As you can tell, I previously attempted these problems and got them incorrect
Hello! I need help with the following problem for my finance course! As you can tell, I previously attempted these problems and got them incorrect so I need help seeing what I did wrong. Please teach me any 'tips' so I can know how to solve problems like these in the future! Thank you!
Here are the problems:
Question 5 O out of 2 points PFD Company has debt with a yield to maturity of 4.4%, a cost of preferred stock of 11.76%, and a cost of equity of X 16.25%. The market value of its debt, preferred stock and equity are $10 million, $15 million, and $3 million respectively, and its tax rate is 40%. What is this firm's weighted average cost of capital (WACC)? Please round your answer to the fourth decimal. If your answer is 1.23%, you should input "0.0123". Selected Answer: 0.1091 Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay X $413.65 at the end of each of the next three years. The opportunity requires to pay an initial investment of $1,000. What is the NPV of this opportunity if the weighted average cost of capital is 10.35% per year? Please round your answer to the second decimal without dollar sign. E.g.-12.34 Selected Answer: 960.06Step by Step Solution
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