Financial Management Unit VIII Assignment This assignment will allow you to demonstrate the following objectives: Compute the net present value, profitability index, and internal rate of return for a given company. Predict the best choice for a company based on analysis of financial data. Compute a company’s WACC using given percentages. Calculate the cost of capital of a stock. Computer the after-tax cost of capital for bonds. Instructions:Answer the questions directly on this document. When you are finished, select “Save As,” and save the document using this format: Student ID_UnitVIII. Upload this document to BlackBoard as a .doc, docx, or .rtf file. Show all of your work. 1. The Turnip Company plans to issue preferred stock. Currently, the company’s stock sells for $110. Once new stock is issued, the Turnip Company would receive only $90. The dividend rate is 8%, and the par value of the stock is $100. Compute the cost of capital of the stock to your firm. Show all work.
