Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

please answer picture question 1 as well as 2 abd 3. company a issues 20 year, 1000 face value, 10% annual coupon bond selling at

image text in transcribed
please answer picture question 1 as well as 2 abd 3.

company a issues 20 year, 1000 face value, 10% annual coupon bond selling at 1,050. companys tax rate is 40%. calculate the after tax cost of debt for company a

options: 7.32, 5.68, 7.81, 6.25

a companys 4% coupon rate, annual payment, 1,000 par value bond that matures in 25 years sells for price of 570.36. the companies tax rate is 35%. determine the firms after tax cost of debt

options: 2.38, 5.22, 3.16, 6.58

The local government is considering a project to build a bridge connecting two cities, A and 8 . The project involves initial cost but is expected to generate revenue through tolls. Here are the cash fow projections for the project: Initil cost at Year 0:A cost $1,000,000 for contractors'tes. End of Year 1: $300.000 from sales End of Year 2, 5400,000 from sales End or Year 3; 5500,000 from sales Assuming a discount rate of 20K per year, calculate the IRR of the project. Is the project financially vabile? IAR - 17.35\%: No, the project is not financially vitue. 1AR * 23.52X: Yes the project is financialy viatle

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

978-1259307416

Students also viewed these Finance questions