FIN 571 Week 5 Learning Team Reflection FOR MORE CLASSES VISIT www. fin571tutor. com
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.
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 )
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FIN 571 Week 5 Learning Team Reflection FOR MORE CLASSES VISIT www. fin571tutor. com
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.