BF 10 hw solutions submitted

BF 10 hw solutions submitted - rejected, even though it...

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Ch. 10 Feb. 27 P1 $1,000x.09x20 = $1,800 a. $1,000x.06x20 = $1,200 b. $1,000x.08x20 = $1,600 c. $1,000x.12x20 = $2,400 P27 a. P0 = D1/Ke – g = 12/10-5 =2.40 b. = 12/12-5 = 1.71 c. =12/10-7 = 4.00 d. =3.50/10-5 = .70 Christina Citek Mar. 3 Ch. 11 P1 The company is following a logical approach to using the cost of capital at this time. If they chose to try to attempt to propose the second project it would definitely be
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Unformatted text preview: rejected, even though it does have a higher return. P14 D1 =$1.20 a. Ke = D1/P0 + g 1.20/30 + 9 = 13% b. Kn = D1/P0-F + g 1.20/30-2 + 9 = 13% P17 Debt 7% 35% 2.45% Preferred Stock 10% 15 1.5% Common equity 13% 50 6.5% 10.45%...
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BF 10 hw solutions submitted - rejected, even though it...

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