Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help i am very very desperate 39. The internal rate of return (IRR) is defined as which of the following: A) IRR may produce
please help i am very very desperate
39. The internal rate of return (IRR) is defined as which of the following: A) IRR may produce multiple rates of return when cash flows are non-conventional. B) IRR is best used for comparing mutually exclusive projects. C) IRR is almost not used in the business world anymore D) IRR is mainly used to evaluate small projects. 42. How much is the cost of equity (stock)? The flotation fee is 5%. a. 8.91% b. 7.75% c. 7.82% d. 8.46 % 43. How much is the WACC? a. 5.44% b. 3.98% c. 4.11% d. 4.49% 44. Wal-Mart new store near JU is expected to generate cash profits as follows. Year 0:-10 millions (initial outlay) Year 1: 1 million Year 2:2 million Year 3: 3 million Year 4: 3 million Year 5: 3 million Year 6: 3 million Year 7: 3 million Year 8: 3 million The store will be closed by the end of the fifth year with no salvage value. Assume the cost of capital (WACC) is 6%. Based on the above information, how much is NPV? a. 6.11 millions b. 5.52 millions c. 5.61 millions d. 5.85 millions 46. A zero coupon bond has no value in it since there is no coupon payment. Investors should avoid this type of bond.. a. True b. FalseStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started