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Copy of KC

# Copy of KC - The fifth weeks homework assignment relates to...

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Chapter 13; Page 432, #16. Group Project – Part 2 2 Speedy  Delivery Systems WACC of Capital 5% 50% 2.500% 17% 50% 8.500% WACC of Capital 3% 8.50% 11% wACC = wk+wK+wK Purchase of the machine would yeail 15% return. This exceds the avrage cap. 5 Calculate the after tax After Tax a. 6% 16% 0.96% b. 12.60% 35 4.41 c. 9.4 24 225.6 6 Calculate the after tax After Tax a. 8% 28% 2.24% b. 11.40% 40 4.56 c. 7.5 0 0.0 Use 1 - tax % The fifth week’s homework assignment relates to the WACC, after-tax cost of debt, yield to maturity, cost earnings, cash flow, payback method and internal rate of return. Chapter 11; Page 354, #2, #5, #6. Page 355, #9. Page 356 #17. Page 358 #22. Chapter 12; Page 398 #1. Page 399, #7. Page 400, #11. Page 402, #19. Page 406, #32.

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60/65 points. Good job Kevin - see my notes in red. 5.5/5.5 correct 4/5.5  4/5.5 st of retained
I \$78 \$1,000.00 \$875.00 \$125.00 FV \$1,000 \$5.00 CV \$875 \$78.00 N \$25 \$83.00 YTM 8.85% 8.85% \$1,000.00 \$875.00 \$1,875.00 \$2.00 \$937.50 b. After-Tax cost of debt=before-tax cost of debt*(1-Rate) 8.85% 1 0.3 0.7 6.20% 3.5/5.5  Page 355, #9.

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Compute Ke and Kn under the following circumstances: kn a. D \$4.60 \$4.60 P \$60.00 \$57.00 G 6% 0.08 F \$3.00 14% ke 13.67% kn 14.07%
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Copy of KC - The fifth weeks homework assignment relates to...

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