QUESTION Dame Co has $9,000,000 in debt with interest rate of 7% and $10,000,000 in debt with a 5% interest rate. Dame Co, has a tax rate of 21%, what is the tax shield from debt per year for Dame Co.? A bond has a face value of $1,000, currently selling for $1,056. It has a coupon rate of 8% and the Y TM is 7%. The bond pays semiannual coupons. How many years are left until maturity ( 2 decimal places is fine)? Today, your favorite company just paid a $2.64 per share dividend. The dividend will grow at 30% and 25% over following two years, and then at 3.4% forever. What is the stock price today? Discount rate of 12.2% What is the saying/slogan associated with the Time Value of Money? What is the main goal of Financial Management? What are the two typical things that we do when we invest in NWC during year 0 of a capital budgeting project? If the required rate of return increases for a project, the NPV will (increase, decrease, neither \{choose one\}). You buy PP\&E today for S1 million. You depreciate this asset straight line for 10 years. However, in year 8 you sell the asset for 54 million. What is the Salvage Value net of tax (SVNOT) is the tax rate is 21% ? GTR Inc. has CFs of $15,400$7,300$9,100 and $5,900 is years 03, what is the IRR of this project? NPV if r is 10% ? Wiley Co. has no debt outstanding and a total market value of $500,000. EBIT is projected to be $50,000. The company is considering a $90,000 debt issue with an interest rate of 10 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,000 shares outstanding, Ignore taxes. Assume the stock price remains constant, a) Calculate the EPS before any debt issue b) Calculate the EPS after debt issue There is a tender offer to repurchase 1,000,000 shares at 550.5 shareholders (group A) each say they are willing to sell 200,000 and 5 shareholders (group B) say they are each willing to sell 500,000 shares at $50. How many shares will each shareholder in group A get to sell? Group B? Which is the most common reason why firms nav dividends? A) To satisfy