Question: please answer all parts :))) will upvote!!!! db - Normal No Spacing Head es, and improvements, choose Check for Updates. Note: You must show your

 please answer all parts :))) will upvote!!!! db - Normal No
please answer all parts :))) will upvote!!!!

db - Normal No Spacing Head es, and improvements, choose Check for Updates. Note: You must show your work to receive full credit (10 points). Bobcat Inc. provides you with the following information about firm's cost of capital. Find WACC Tax rate - 35% 8-year, 10% coupon, semiannual payment non-callable bonds sell for $998. New bonds will be privately placed with no flotation cost with $1,000 par value. 9% annual dividend, S100 par value, perpetual preferred stock sells for $98.5. The firm plans to issue new common stock with the flotation cost of 5%. Common stock currently sells for $120. D. - $8.2 and g -4%. Target capital structure: 35% debt, 15% preferred, 50% common equity. Assume that Bobcat Inc. is considering a projects Purchase $1,500,000 of equipment in 2020 (1-0) Inventory increase $120,000, account payable increase $20,000. All other working capital components stay the same. Project lasts for 4 years Sale forecasts (in unit): 2021-1.2 million units (Mu), 2022-1.5Mu, 2023-2 Mu, 2024-2.45Mu. Selling price is $1.5 per unit, Operational cost is 65% of sale 4-year straight line depreciation (straight line depreciation cost of equipment/equipment life). It will be depreciated to zero. Salvage Value - $35,000, fully recovers NOW at the end of the project Bobcat Inc. only accepts a project with less than 3 years of payback. Find NPV, IRR, MIRR, Payback period Should Bobcat Inc. invest in the projects based on the capital budgeting criteria for NPV, TRR, MIRR. and Payback period? Also, explain the decision criteria for accept or reject. Make sure to discuss the decision criteria for all methods to receive full credit Focus db - Normal No Spacing Head es, and improvements, choose Check for Updates. Note: You must show your work to receive full credit (10 points). Bobcat Inc. provides you with the following information about firm's cost of capital. Find WACC Tax rate - 35% 8-year, 10% coupon, semiannual payment non-callable bonds sell for $998. New bonds will be privately placed with no flotation cost with $1,000 par value. 9% annual dividend, S100 par value, perpetual preferred stock sells for $98.5. The firm plans to issue new common stock with the flotation cost of 5%. Common stock currently sells for $120. D. - $8.2 and g -4%. Target capital structure: 35% debt, 15% preferred, 50% common equity. Assume that Bobcat Inc. is considering a projects Purchase $1,500,000 of equipment in 2020 (1-0) Inventory increase $120,000, account payable increase $20,000. All other working capital components stay the same. Project lasts for 4 years Sale forecasts (in unit): 2021-1.2 million units (Mu), 2022-1.5Mu, 2023-2 Mu, 2024-2.45Mu. Selling price is $1.5 per unit, Operational cost is 65% of sale 4-year straight line depreciation (straight line depreciation cost of equipment/equipment life). It will be depreciated to zero. Salvage Value - $35,000, fully recovers NOW at the end of the project Bobcat Inc. only accepts a project with less than 3 years of payback. Find NPV, IRR, MIRR, Payback period Should Bobcat Inc. invest in the projects based on the capital budgeting criteria for NPV, TRR, MIRR. and Payback period? Also, explain the decision criteria for accept or reject. Make sure to discuss the decision criteria for all methods to receive full credit Focus

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