How to find the Yield to Maturity

NPV

Discounted Pay Back period

Use the following information to answer questions #45 through #50. A 3-year project will cost $60,000 to construct. This will be depreciated straight-line to zero over the 3-year life. Projected sales=7,000 units per year, price per unit-$25 and variable cost per unit-$14. Fixed costs $30,000 per year. The tax rate=30% and the debt-to-equity ratio is 1. The firm has outstanding 8% annual coupon bonds with 9 years until maturity selling at 109:0. The firm just paid a $2.00 dividend on its common stock, the dividend growth rate is 5% and the stock currently sells for $28 per share. = 20,000 60,000-0/3 8100