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please see tabs at bottom there are 10 total questions to answer, thank you Source Cost of Capital Before-tax cost of debt financing Question Black
please see tabs at bottom there are 10 total questions to answer, thank you
Source Cost of Capital Before-tax cost of debt financing Question Black Hill, Inc. sells $100 million worth of 26-year to maturity 14.41% annual coupon bonds. The net p Round the answer to two decimal places in percentage form. Use Excel or the financial calculator. % oupon bonds. The net proceeds (proceeds after flotation costs) are $1022 for each $1,000 bond. What is the be financial calculator. 00 bond. What is the before-tax cost of capital for this debt financing? Source Cost of Capital Copy of Cost of common equity financing using Gordon Question Calculate the cost of new common equity financing of stock Q using the Gordon model. Round the answer to two decimal places in percentage form. Last Year Dividend Stock Q % $2.46 Growth Selling Rate of Price of Dividends Stock 6% $61.25 Flotation Costs $2.57 Cost of Common Equity ? on model. Source Cost of Capital Copy of Cost of retained earning financing using CAPM-SML Question IBM is trying to determine the appropriate cost for retained earnings to be used in capital budgetin Round the answer to two decimal places in percentage form. % d in capital budgeting analysis. The firm's beta is 1.76. The rate on six-month T-bills is 2.97% and the return .97% and the return on the S&P 500 index is 8.34%. What is the appropriate cost for retained earnings in de ained earnings in determining the firm's cost of capital? Source Cost of Capital After-tax cost of debt financing Question IBM, Inc. sells $100 million worth of 25-year to maturity 15.01% annual coupon bonds. The net proceeds (proceeds after fl Round the answer to two decimal places in percentage form. Use Excel or the financial calculator. % roceeds (proceeds after flotation costs) are $1126 for each $1,000 bond. The firm's marginal tax rate is 49%. What is the after-tax cost o What is the after-tax cost of capital for this debt financing? Source Cost of Capital Question Home Depot needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays Round the answer to two decimal places in percentage form. % ock outstanding that pays a constant dividend of $3.35 per year. That preferred stock is currently selling for $79.36. However, the unde 79.36. However, the underwriter would charge flotation costs of $2.46 per share. What is the firm's cost of preferred stock financing? eferred stock financing? Source Capital Budget Decision Criteria Discounted payback period Question Find the discounted payback period for the following projects. The discount rate is 7 percent. Initial outl Year 1 Year 2 Year 3 Year 4 $8,642 $3,628 $3,325 $5,202 $7,153 Round the answer to two decimal places. Step 2: The initial outlay is $8642. During year 1, the firm will recover (using discounted cash flows) $3390.65, so ($8642) + $3390.65 = $-5251.35 is what the During year 2, the firm will recover (using discounted cash flows) $2904.18, so ($-5251.35) + $2904.18 = $-2347.17 is what During year 3, the firm will receive (using discounted cash flows) $4246.38, which is greater than $2347.17. Assuming that The total discounted payback period is 2.55 years. 5 = $-5251.35 is what the firm still needs to recover after the end of year 1. 04.18 = $-2347.17 is what the firm still needs to recover after the end of year 2. $2347.17. Assuming that all cash flows will be received gradually during year 3, it will take $2347.17 / $4246.38 = 0.55 of a year to reco 38 = 0.55 of a year to recover $2347.17. Source Capital Budget Decision Criteria Copy of IRR Question A project has an initial outlay of $2280. It has a single cash flow at the end of year 7 of $5757. What is the internal rate of r Round the answer to two decimal places in percentage form. % hat is the internal rate of return (IRR) for the project? Source Capital Budget Decision Criteria Discounted payback period Question Find the discounted payback period for the following projects. The discount rate is 7 percent. Initial outl Year 1 Year 2 Year 3 Year 4 $8,571 $3,634 $3,463 $5,628 $7,061 Round the answer to two decimal places. Step 2: The initial outlay is $8571. During year 1, the firm will recover (using discounted cash flows) $3396.26, so ($8571) + $3396.26 = $-5174.74 is what the During year 2, the firm will recover (using discounted cash flows) $3024.72, so ($-5174.74) + $3024.72 = $-2150.02 is what During year 3, the firm will receive (using discounted cash flows) $4594.12, which is greater than $2150.02. Assuming that The total discounted payback period is 2.47 years. 6 = $-5174.74 is what the firm still needs to recover after the end of year 1. 24.72 = $-2150.02 is what the firm still needs to recover after the end of year 2. $2150.02. Assuming that all cash flows will be received gradually during year 3, it will take $2150.02 / $4594.12 = 0.47 of a year to reco 12 = 0.47 of a year to recover $2150.02. ource Capital Budget Decision Criteria Copy of NPV of mixed stream of payments (4 years) Question Tall Trees, Inc. uses net present value (NPV) when evaluating projects. You have to find the NPV for one of the company's p Year 1: 198961 Year 2: 104549 Year 3: 179742 Year 4: 159720 Round the answer to two decimal places. $ or one of the company's projects, assuming the company's cost of capital is 6.25 percent. The initial outlay for the project is $458703. T the project is $458703. The project will produce the following after-tax cash inflows: Source Capital Budget Decision Criteria Copy of NPV of mixed stream of payments (5 years) Question Find the net present value (NPV) for the following series of future cash flows, assuming the company's cost of capital is 5.2 Year 1: 172744 Year 2: 193748 Year 3: 132355 Year 4: 182229 Year 5: 162964 Round the answer to two decimal places. $ any's cost of capital is 5.29 percent. The initial outlay is $452022Step by Step Solution
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