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Please help me with the attached document. Please answer them in microsoft word. Thank you! HOMEWORK PROBLEMS (1) Company BW has issued $10,000 debt with
Please help me with the attached document. Please answer them in microsoft word. Thank you!
HOMEWORK PROBLEMS (1) Company BW has issued $10,000 debt with an interest rate of 10%. Corporate income tax rate is 34%, find the after-tax cost of debt. (2) Company BW also has issued $10,000 preferred stock. The face value is $100, coupon rate is 8%, and market pays $80 for a share. Find the cost of preferred stock. (3) Company BW has 5000 shares outstanding and the price is $40 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 cost of equity? (4) Find the overall cost of capital for BW (WACC). (5) Company BW has the following two investment opportunities (A and B). Which project is better, according to NPV? 9-1Step by Step Solution
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