Business Finance Week 5 Homework

Business Finance Week 5 Homework - WeekFiveHomeworkProblems...

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Week Five Homework Problems Quizzes Home       Summary       Submissions Selected   Reports         Rhonda Zubas (username: rdzubas1) To Submissions Attempt 1 Written: Sep 12, 2011 2:39 PM - Sep 15, 2011 9:06 AM Submission View Your quiz has been submitted successfully. Information Problem 11-2 Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 8 percent  return and can be financed at 5 percent with debt. Later in the year, the firm turns down an  opportunity to buy a new machine that would yield a 15 percent return but would cost 17 percent to  finance through common equity. Assume debt and common equity each represent 50 percent of the  firm’s capital structure. Question 1 1 / 1 point a.) Compute the weighted average cost of capital. Round our answer to 2 decimal places. Omit the "%" sign in your response.
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Answer: 11 Question 2 1 / 1 point b.) Which project(s) should be accepted? Question options: 
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This note was uploaded on 09/15/2011 for the course FINC 350-A taught by Professor Mason during the Spring '09 term at Columbia College.

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Business Finance Week 5 Homework - WeekFiveHomeworkProblems...

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