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Please show the calculation in EXCEL. thanks I do not know how to get there A retail coffee (:::m|::ic-1n'3r is planning to open 90 new
Please show the calculation in EXCEL. thanks I do not know how to get there
A retail coffee (:::m|::ic-1n'3r is planning to open 90 new coffee outlets that are enacted to generate $13.6 million in free cash ows per year, with a growth rate of 2.6% in perpemity. If the coffee company's WACC is 9.4%, what is the NPV of this expansion? The present value of the free cash ows is S 250 million. (Round to two decimal places.) NlCity, Inc., is nanced 36% with debt, 1 1% with preferred stock. and 53% with common stock. Its cost of debt is 5.8%, its preferred stock plays an annual dividend of $2.46 and is priced at $34. It has an equity beta of 1.12. Assume the riskfree rate is 2%, the market risk premium is 6.3% and NlCity's tax rate is 35%. What is its after-tax WACC? The WACC is 51.. (Round to two decimal places.) Avicorp hes a $10.8 million debt issue outstanding. with a 5.9% coupon rate. The debt has semiennuei coupons. the next coupon is due in six months, and the debt matures in ve years. It is currently priced at 93% of par value. a. What is Avicorp's pretax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 45% tax rate, whet is its alter[ex cost of debt? a. The costof debt is ?.?541 9': per year. (Round to four decimal places.) b. If Avicorp faces a 46% tax rate, the alter-tax cost of debt is 4.6524 %. (Round to four decimal places.) HighGrewlh Company has a stock pride of $22. The rm will pay a dividend next year of $0.92, and its dividend is expected to gm at a rate of 3.6% per year thereafter. What is your estimate of HighGrew1'5 0051'. of equity capital? The required return (cost of capital) of levered equity is -%. {Round to one decimal place.)Step by Step Solution
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