Question: Please answer those question with round first two decimals Suppose your firm has a cost of debt of 7% and a debt to equity ratio
Please answer those question with round first two decimals





Suppose your firm has a cost of debt of 7% and a debt to equity ratio of 1:1. Your firm's Beta is 1.8, the current 5- year Treasury Yield is 3%, and you estimate that the equity risk premium is 6%. You are considering a five-year project that has the following cashflows and default probabilities: 4 Year 0 2 3 5 1 40 -200 0 300 60 90 CF 0 0.3 0 0.3 0.3 0.3 Pr(Default) What is the weighted average cost of capital for the firm? (Report your answer as a percent (i.e. 4% = 4). Suppose your firm has a cost of debt of 7% and a debt to equity ratio of 1:1. Your firm's Beta is 1.8, the current 5- year Treasury Yield is 3%, and you estimate that the equity risk premium is 6%. You are considering a five-year project that has the following cashflows and default probabilities: 2 3 4 5 40 300 Year 0 1 CF -200 0 Pr(Default) Io 0 What is the NPV of the project assuming no default? 60 0.3 90 0.3 0.3 0.3 Suppose your firm has a cost of debt of 7% and a debt to equity ratio of 1:1. Your firm's Beta is 1.8, the current 5- year Treasury Yield is 3%, and you estimate that the equity risk premium is 6%. You are considering a five-year project that has the following cashflows and default probabilities: Year 0 2 3 4 5 CF Pr(Default) -200 0 1 0 0 60 40 0.3 90 0.3 300 0.3 0.3 What is the IRR of the project assuming no default? (Report your answer as a percent (.e. 4% = 4). Suppose your firm has a cost of debt of 7% and a debt to equity ratio of 1:1. Your firm's Beta is 1.8, the current 5- year Treasury Yield is 3%, and you estimate that the equity risk premium is 6%. You are considering a five-year project that has the following cashflows and default probabilities: 1 3 Year 2 4 5 0 60 90 40 CF 300 0 -200 0 0.3 0.3 0.3 Pr(Default) 0.3 0 What is the NPV of the project assuming default? (Report your answer as a percent (i.e. 4% = 4). Suppose your firm has a cost of debt of 7% and a debt to equity ratio of 1:1. Your firm's Beta is 1.8, the current 5- year Treasury Yielaris 3%, and you estimate that the equity risk premium is 6%. You are considering a five-year project that has the following cashflows and default probabilities: 0 1 3 4 5 Year CF Pr(Default) 0 2 40 0.3 90 -200 0 300 60 0.3 0 0.3 0.3 What is the IRR of the project assuming default? (Report your answer as a percent (i.e. 4% = 4)
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