Question: Please answer all! No excel use if possible please. Chapter 14 Homework This assignment is based on Course Learning Objectives CLOI, CLO2, CLO3, CLO4 &

 Please answer all! No excel use if possible please. Chapter 14
Please answer all!
No excel use if possible please.

Chapter 14 Homework This assignment is based on Course Learning Objectives CLOI, CLO2, CLO3, CLO4 & CLOS, and the following Module 4 Learning Objectives: Calculate weighted average cost of capital Company BW has issued 2,000 corporate bonds with a maturity value of $1,000 and a coupon rate of 6% Coupon payments are made every 6 months and those bonds will mature in 6 months from today. Current market price of those bonds is $978.56. Marginal corporate income tax rate is 34% find the annual after-tax cost of debt for these bonds, 115 points] *** HINT: What have you found? Semi-annual rate or annual rate? (2) Company BW has $500,000 loan outstanding. The annual loan interest rate is 6% with monthly compounding meaning BW is making monthly payments). Find the annual after-tax cost of debt for the loan. [10 points) (3) Company BW has issued 2,000 preferred stocks. The par value is $100, dividend rate is 8%, and dividend is paid at the end of each year. Market price is $85 a share Find the annual cost of preferred stock. [10 points) (4) Company BW has 50,000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the stock market. Current T- bill rate is 3% and expected stock market return this year is 9% What is BW's annual cost of equity?[15 points) (5) Find the overall (annual) cost of capital for BW (WACC). [20 points] (6) Company BW has the following two investment opportunities (A and B). a) Which project is better, according to NPV ? [15 points) b) Which project is better, according to Modified IRR? [15 points) ***Let's not to consider the difference in the duration of these projects Posts 00 100

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