Question: PLEASE USE EXCEL FORMULAS or SHOW THE SCREENSHOTS WITH FORMULAS PLEASE!!! 1. La Fonda Restaurants have an extra cash of $ 25,000. They have two

PLEASE USE EXCEL FORMULAS or SHOW THE SCREENSHOTS WITH FORMULAS PLEASE!!!

1. La Fonda Restaurants have an extra cash of $ 25,000. They have two investment options that will earn interest either at the rate of 10% compounded semiannually or 9.5% compounded quarterly. Which would you advise?

2. Your company's philanthropy initiative invested $ 50,000 in an account earning 7% per annum interest. The initiative added $ 30,000 to the account at the end of fifth year. How much money will the initiative have at the end of ten years from these investments?

3. A company is planning a 50 mio expansion. The expansion is to be financed by selling 20 mio in new debt and 30 mio in new common stock. The equity investors are expecting a 14% return. Before-tax required return on debt is 9%. If the company is in the 40% tax bracket, the company's marginal cost of capital is:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!