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Please answer all! No excel use if possible please. Chapter 14 Homework This assignment is based on Course Learning Objectives CLOI, CLO2, CLO3, CLO4 &

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Please answer all!
No excel use if possible please.
Chapter 14 Homework This assignment is based on Course Learning Objectives CLOI, CLO2, CLO3, CLO4 & CLOS, and the following Module 4 Learning Objectives: Calculate weighted average cost of capital Company BW has issued 2,000 corporate bonds with a maturity value of $1,000 and a coupon rate of 6% Coupon payments are made every 6 months and those bonds will mature in 6 months from today. Current market price of those bonds is $978.56. Marginal corporate income tax rate is 34% find the annual after-tax cost of debt for these bonds, 115 points] *** HINT: What have you found? Semi-annual rate or annual rate? (2) Company BW has $500,000 loan outstanding. The annual loan interest rate is 6% with monthly compounding meaning BW is making monthly payments). Find the annual after-tax cost of debt for the loan. [10 points) (3) Company BW has issued 2,000 preferred stocks. The par value is $100, dividend rate is 8%, and dividend is paid at the end of each year. Market price is $85 a share Find the annual cost of preferred stock. [10 points) (4) Company BW has 50,000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the stock market. Current T- bill rate is 3% and expected stock market return this year is 9% What is BW's annual cost of equity?[15 points) (5) Find the overall (annual) cost of capital for BW (WACC). [20 points] (6) Company BW has the following two investment opportunities (A and B). a) Which project is better, according to NPV ? [15 points) b) Which project is better, according to Modified IRR? [15 points) ***Let's not to consider the difference in the duration of these projects Posts 00 100

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