Details of this Paper

Given the following annual net cash flows detemine...




Given the following annual net cash flows detemine the internal rate of return to the nearest whole percent of a project with an initial outlay of $750,000. Yr. 1 500,000 Yr.2 150,000 Yr.3 250,00 a) 9% b) 11% C) 13% d) 15% Given the following information on S & G inc.s capital structure, compute the company?s weighted average cost of capital? Company marginal tax rate is 40%? Percent of Capital Before-Tax component Structure cost Bonds 40% 7.5% Preferred Stocks 5% 11% Common Stock (Internal Only) 55% 15% a) 13.3% b) 7.1% c) 10.6% d) 10% Kelly Corp. will issue new common stock to finance an expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8% indefinitely. The stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is the cost of new common stock be for kelly Corp.? a) 11.33% b) 11.51% c) 11.60% d) 11.79% e) 12.53% A company has preffered stockk that can be sold for $21 per share . The preferred stock pays an annual dividend of 3.5% base on a par value of $100. Flotation costs assoc with sale of preferred stock equal $1.25 per share. The company marginal tax rate is 35%. The cost of pere stock is a) 18.87& b) 17.72% c) 14.26% d) 12.94% Zellars, Inc. Is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 year one and $75,000 in year two. Project B cost $120,000 and is expected to generate $64,000 in year one, $67,000 year 2, $56,000 year 3 and $45,000 year 4. Zellars, required rate of return for these projects is 10%. The internal rate of return for Project a is a) 31.43% b) 29.42% c) 25.88% d) 19.45%


Paper#2451 | Written in 18-Jul-2015

Price : $25