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Will rate all answers thanks!! 13. Mazzei, Inc. has a 30% tax rate. The company plans to sell bonds having a par value of $1,000.
Will rate all answers thanks!!
13. Mazzei, Inc. has a 30% tax rate. The company plans to sell bonds having a par value of $1,000. The coupon rate would be 7%, paid in a single payment each year. The time to maturity would be 20 years. The firm believes that it can sell these bonds for $1,100, and that it would incur flotation costs of $25 per bond. What is the firm's after-tax cost of debt? A. B. C. 1.90% 4.43% 4.49% 6.33% 6.41% D. E. 14. Your firm is considering a project proposal, and it has been estimated that moving forward with the project would result in the following changes in the firm's current accounts: Increase in inventory: Increase in accounts receivable: Increase in accounts payable: 26,000 11,500 18,000 For purposes of calculating the initial investment, what is the amount of the cash flow resulting from the change in net working capital? A. B. C. D. -32,500 -19,500 -3,500 +3,500 15. For projects having nonconventional cash flows: A. There will sometimes be no solution for the Internal Rate of Return (IRR). B. There will sometimes be multiple solutions for the Internal Rate of Return (IRR). C. Both "A" and "B" are true. D. Neither A nor B is true
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