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
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
value of the CAD if your required return is 10 percent and the life of the system is expected to be 5 years.( 10 points)
6. Your company is considering converting its heating system in the main office from coal to heating oil. The initial cost of removing the coal fired furnace and installing an new oil fired unit is $ 60,000. The life of the analysis is 7 years. In the past you spent $ 25,000 per year on coal. The 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