Question: please show how to answer both, thanks! Question 3 1 pts You find the cost of capital of General Motors is 6.13%. This indicates General
Question 3 1 pts You find the cost of capital of General Motors is 6.13%. This indicates General Motors owns other companies bonds that earn a 6.13% rate. 6.13% of General Motor's capital is raised by using debt financing. General Motors pays a tax rate of 6.13%. Olt costs General Motors 6.13% to raise capital General Motors inwests capital in projects that all earn 6.13%. Question 4 1 pts What is the payback period of the following project with Free cash flows as stated? 1 3 4 Year Free cash Flow 2 60 -200 50 90 30 8.61 Five years Four years Three years 70
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
