----------------------------------------------------------------------------------------------- FIN 571 Week 5 Learning Team Reflection
Watch the " Concept Review Video : Cost of Capital " video located in the WileyPLUS Assignment : Week 5 Videos Activity . Discuss some of the corporate finance challenges faced by this company . Write a 350-700 word summary of your discussion . Click the Assignment Files tab to submit your assignment .
------------------------------------------------------------------------------ FIN 571 Week 5 Team Assignment Capital Budgeting Assignment , Part 1 ( New Heritage Doll )
new company says you will spend no more than $ 15,000 per year on heating oil . If your required return is 12 percent , should you make this investment ? Please calculate the net present value of this project . ( 10 points ) 7 . You have collected the following information : a . the yield on your company ’ s preferred stock 8 % b . the yield on your company ’ s debt 10 % c . the required return on your company ’ s common stock and internal equity 12 % d . debt total $ 5,000,000 e . preferred stock current market value $ 10,000,000 f . common stock and retained earnings total value $ 20,000,000
Please calculate the pre-tax weighted average cost of capital ( WACC ) for your company . ( 10 points )
8 . Your company ’ s marginal income tax rate is 40 %. Please calculate the post tax WACC from the information provided in problem 7 . ( 10 points )
----------------------------------------------------------------------------------------------- FIN 571 Week 5 Learning Team Reflection
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Watch the " Concept Review Video : Cost of Capital " video located in the WileyPLUS Assignment : Week 5 Videos Activity . Discuss some of the corporate finance challenges faced by this company . Write a 350-700 word summary of your discussion . Click the Assignment Files tab to submit your assignment .
------------------------------------------------------------------------------ FIN 571 Week 5 Team Assignment Capital Budgeting Assignment , Part 1 ( New Heritage Doll )