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Provide full documentation of the process used to...

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Provide full documentation of the process used to reach the solution. Complete the Unit 3 problem spreadsheet template provided below and submit in the assignment area. (9.2). LL Incorporated?s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. I its marginal tax rate is 35%, what is LL?s after-tax cost of debt? Explain how cost of capital financing techniques affects the organization. (10.1). A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and cost of capital of 12%. What is the project?s NPV? (Hint, begin by constructing a time line). Explain how to use capital budgeting and relevant cash flow to compare investment alternatives. (15.3). Ethier Enterprises has an unlevered beta of 1.0. Ethier id financed with 50% debt and has a levered beta of 1.6. If the risk free rate is 5.5% and the market risk premium is 6%, how much is the additional premium that Ethier?s shareholders require to be compensated for financial risk? Explain how varying degrees of financial risk may command variations in shareholder return expectations. Please insert the correct formulas in order to reach the correct answers into the gray cells in the template.,A) After calculating the NPV and IRR for Machine A and Machine B, choose which one you would choose based on being the most profitable. B) Would an investor choose an investment with the highest NPV or IRR? Justify which one and why. C) Discuss capital rationing limits firms have and what, if anything they can do. D) Discuss the MIRR and its advantages/disadvantages. E) Discuss the WACC. Can you Please fill this out!

 

Paper#3764 | Written in 18-Jul-2015

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