Suppose the amount of debt is 60% as the amount of equity for a project. If...
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Suppose the amount of debt is 60% as the amount of equity for a project. If the IRR on debt is 8% and the Market IRR is 10%, what is the IRR on equity (approximately)? Round your answer in two decimal places and do not insert the 9% sign. (e.g. If IRR is 16.6%, put 16.60 in the box) QUESTION 6 An investor is planning to borrow $700,000 from an Australian bank at an annual rate of 4.40%. Assuming the loan term is 15 years, what is the monthly repayment? Hint: the effective annual interest rate (EAR) is compounded over 12 months i.e. EAR-[(1 + (i/n))'n ]-1. Find the monthly rate for your calculation. Round your answer in the nearest dollar (e.g. repayment of $3545.59 is rounded as $3546). Do not include $ sign. Suppose the amount of debt is 60% as the amount of equity for a project. If the IRR on debt is 8% and the Market IRR is 10%, what is the IRR on equity (approximately)? Round your answer in two decimal places and do not insert the 9% sign. (e.g. If IRR is 16.6%, put 16.60 in the box) QUESTION 6 An investor is planning to borrow $700,000 from an Australian bank at an annual rate of 4.40%. Assuming the loan term is 15 years, what is the monthly repayment? Hint: the effective annual interest rate (EAR) is compounded over 12 months i.e. EAR-[(1 + (i/n))'n ]-1. Find the monthly rate for your calculation. Round your answer in the nearest dollar (e.g. repayment of $3545.59 is rounded as $3546). Do not include $ sign.
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To find the IRR on equity we can use the Weighted Average Cost of Capital WACC formula which takes i... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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