----------------------------------------------------------------------------------------------- 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)