FIN 370 Week 5 Question and Problem Set ( Ch18-Q3 , Ch18- Q11 , Ch20-Q8 , Ch20-Q14 , Ch21-Q4 , Ch21-Q7 , Ch26-Q1 , Ch26-Q2 )
To finance the investment , Vestor has issued 20 year bonds with a $ 1,000 par value , 6 % coupon rate and at a market price of $ 950 . Preferred stock paying a $ 2.50 annual dividend was sold for $ 25 per share . Common stock of Vestor is currently selling for $ 50 per share and has a Beta of 1.2 . The firm ' s tax rate is 34 %. The expected market return of the S & P 500 is 13 % and the 10-Year Treasury note is currently yielding 3.5 %. Determine what discount rate ( WACC ) Vestor should use to evaluate the warehousing facility project . Assess whether Vestor should make the warehouse investment . Prepare your analysis in a minimum of 700 words in Microsoft ® Word . Use Microsoft ® Word tables in the presentation if you choose . Show all calculations and analysis in the presentation . Format your assignment consistent with APA guidelines . Click the Assignment Files tab to submit your assignment . Note : Grades are awarded based upon individual contributions to the Learning Team assignment . Each Learning Team member receives a grade based upon his / her contributions to the team assignment . Not all students may receive the same grade for the team assignment . ==================================================
FIN 370 Week 5 Question and Problem Set ( Ch18-Q3 , Ch18- Q11 , Ch20-Q8 , Ch20-Q14 , Ch21-Q4 , Ch21-Q7 , Ch26-Q1 , Ch26-Q2 )
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Purpose of Assignment