Question: You must recommend to the client a new structure that minimizes their ongoing cash flow cost for service of their outstanding obligations. Any of the
You must recommend to the client a new structure that minimizes their ongoing cash flow cost for service of their outstanding obligations. Any of the securities listed can be bought out in part or whole through open market transactions at the market prices you calculate, albeit over a period of weeks. A new issue of any security can be completed at current yields. Calculate the weighted average cost of capital before and after restructuring considering a tax rate of 35%. (16 marks) You must recommend to the client a new structure that minimizes their ongoing cash flow cost for service of their outstanding obligations. Any of the securities listed can be bought out in part or whole through open market transactions at the market prices you calculate, albeit over a period of weeks. A new issue of any security can be completed at current yields. Calculate the weighted average cost of capital before and after restructuring considering a tax rate of 35%. (16 marks)
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