Module 5 Spreadsheet -...

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MGT 325 Module 5 Spreadsheet Exam - this is one long problem or case study.   Please place your answers to each question in each part in the outlined box To do this exam you need to study the cases at the end of Chapter Eleven.  Rem when calculated is before tax and has to be converted to an after tax return.  The common stock are already after tax so are not adjusted, which is explained in Ch PROBLEM FOR CHAPTERS TEN AN Saint Leo Manufacturing is going to introduce a new product line and to accompli it has four projects analyzed in which it wants to invest a total of $100 million.  Yo find what it will cost to raise this amount of capital based on the cost of the capita below: PRO A INVESTMENT  $30,000,000  EXPECTED RETURN 10.00% The firms capital structure consists of: CAPITAL DEBT PREFERRED STOCK COMMON STOCK Other information about the firm: CORPORATE TAX RATE 35% DEBT CURRENT PRICE  $900.00  ANNUAL INTEREST 9.00% ORIGINAL MATURITY 25 MATURITY VALUE  $1,000.00  FLOTATION COST
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This note was uploaded on 11/14/2010 for the course MANAGEMENT 322 taught by Professor Saadmetwaa during the Fall '09 term at Alma College.

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Module 5 Spreadsheet -...

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