Question: Final - T00604427 Layout References Mailings - A A A A E Review View 1 Help Grammarly ABCD Aalboete AaBC AaBbcd AaB Aabbet oma No
Final - T00604427 Layout References Mailings - A A A A E Review View 1 Help Grammarly ABCD Aalboete AaBC AaBbcd AaB Aabbet oma No S e dingt Heading 2 Tide Sue S Question 3: CaixaBank, Corp. needs to purchase new plastic mouling machines to meet the demand for its product. The cost of the equipment is $1.424,000. It is estimated that the firm will increase after tax cash flow (ATCF) by 5266,941 annually for the next 6 years. The firm is financed with 40% debt und 60% equity, both based o current market values, though the firm has announced that it wants to quickly change its debt to equity ratio to 13. The firm's betais 131, the free reis 265 the expected market is 5.99%. Cai Beck. Corp's semi-annual boods have 12.10% coupons, 16 years to maturity, and a quoted price of 104.472. Assume the firm's tax rate is 34%. The firm's last 5 dividends (the last in the list is Do) are 1.23, 1.25, 1.42, 1.90 and 1.9. Its current market price is $1470.67. Question. Short Answer Assume that there are some large clean and disposal costs of $142.400 M the end of the project in year 7. Explain in a cow how this impacts the calculation of the internal rate of return? Note that no additional calculation is required to this question (10 marks)
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