Question: please answer picture question 1 as well as 2 abd 3. company a issues 20 year, 1000 face value, 10% annual coupon bond selling at
company a issues 20 year, 1000 face value, 10% annual coupon bond selling at 1,050. companys tax rate is 40%. calculate the after tax cost of debt for company a
options: 7.32, 5.68, 7.81, 6.25
a companys 4% coupon rate, annual payment, 1,000 par value bond that matures in 25 years sells for price of 570.36. the companies tax rate is 35%. determine the firms after tax cost of debt
options: 2.38, 5.22, 3.16, 6.58
The local government is considering a project to build a bridge connecting two cities, A and 8 . The project involves initial cost but is expected to generate revenue through tolls. Here are the cash fow projections for the project: Initil cost at Year 0:A cost $1,000,000 for contractors'tes. End of Year 1: $300.000 from sales End of Year 2, 5400,000 from sales End or Year 3; 5500,000 from sales Assuming a discount rate of 20K per year, calculate the IRR of the project. Is the project financially vabile? IAR - 17.35\%: No, the project is not financially vitue. 1AR * 23.52X: Yes the project is financialy viatle
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
