Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer them all! The firm estimates that it needs to initially invest $90 in new project, with the following cash flows: year 1 $30,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedplease answer them all!

The firm estimates that it needs to initially invest $90 in new project, with the following cash flows: year 1 $30, year 2 $40, year 3 $40, year 4 $40. If the cost of capital is 10%, what is the IRR? - 23% 10% 117.7% 27.7% The firm estimates that it needs to initially invest $90 in new project, with the following cash flows: year 1 $30, year 2 $40 year 3 $40, year 4 $40. If the cost of capital is 10%, what is the NPV? 27.70 117.70 90 40 The firm issued a preferred stock with the par value at $8.90, with annual dividends of $0.80. The firm paid $0.70 flotation cost of the par) to sell it. What's the cost of preferred stocks? 10% 8.99% 09.76% O 0.70% Assume that a bond is quoted at 92% of par, with a 5% coupon rate, expiring in 30 years with semiannual payments. What is the cost of this bond before tax, if the flotation cost is $100? 3.17% 6.35% 2.78% 5.55%

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

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

Raising Venture Capital

Authors: Rupert Pearce, Simon Barnes

1st Edition

0470027576, 978-0470027578

More Books

Students also viewed these Finance questions

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago