Corporate Finance Chp11 Solutions

# Corporate Finance Chp11 Solutions - C01 \$(5,000.00 F1 8 NPV...

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Chapter 11 Homework 11.6 11.13 CF  CFo   \$(200.00) C01  \$(300.00) F1 3 NPV I 14.40% [nominal=(1+real)*(1+inflati NPV  \$891.84  11.14 Bond A 3% Choose Bond A Bond B 1+k=(1+∆Pe)*(1+r) 1+k=(1+.01)*(1+.015) 1+k=1.02515 k=.0252 2.52% 11.15 11.18 CF  CFo   \$(12,000,000.00) C01  \$1,800,000.00  F1 9 C02  \$6,100,000.00  F2 1 NPV I 10% NPV  \$718,056.93  11.34 CF  CFo   \$100,000.00

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Unformatted text preview: C01 \$(5,000.00) F1 8 NPV I 10% NPV \$(73,325.37) Market value - Tax on Gain: 1,000,000-60,000= \$ 940,000 Market value + Tax on Loss: 6,000,000+60,000= \$ 660,000 Marginal tax rate = 35% Average tax rate = 3,400,000+(2,000,000*.35)/12,000,000= 34.2% Chapter 11 Homework tion)]...
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Corporate Finance Chp11 Solutions - C01 \$(5,000.00 F1 8 NPV...

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