Question
plz provide an swers in excel Maloneys, Inc., has found that its cost of common equity capital is 17 percent and its cost of debt
plz provide answers in excel
Maloneys, Inc., has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. If the firm is financed with $3,000,000 of common shares (market value) and $2,000,000 of debt, then what is the after-tax weighted average cost of capital for Maloneys if it is subject to a 40 percent marginal tax rate?
Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,750,000. Expected cash flows over the next four years are $725,000, $850,000, $1,200,000, and $1,500,000. Given the companys required rate of return of 15 percent, what is the NPV of this project?
A.$1,169,806
B.$2,919,806
C.$4,669,806
D.$3,122,607
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