Question: Chapter 7 - Assignment - Green Construction Your answer should identify each of the TVM variables using the same format as the demonstration problems. Marks

 Chapter 7 - Assignment - Green Construction Your answer should identify

Chapter 7 - Assignment - Green Construction Your answer should identify each of the TVM variables using the same format as the demonstration problems. Marks will be deducted if variables are hidden within the formulas only. Please show and clearly label all supporting calculations. Do not round any figures until your final answer. Round final answers to dollars and cents. At Green Construction, earnings before interest and taxes (EBIT) for the year just ended were $55 million and are expected to grow at 2% per year. The company pays $8 million in interest each year on its 45-year bonds. The expected rate of return on its bonds is 3% and on its stocks is 8%. Green's corporate tax rate is 40%. Green's plowback ratio is 40%. Green has 15 million shares outstanding and 150,000 bonds with $1,000 par value. Bonds: Per bond: Jply Ichy PV PMT FV i Stocks: Per share: Note 1 (show all calculations for your dividend payment here)

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