# Ch9.Answers (1) - 9.2.35.4.06(1.4.12.25)=.1144 or 11.44...

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Chapter 9 Answers 1- - a. FV=-1000, PV=1107, PMT=-90, N=15, I=>7.77*(1-.4)=.0466 or 4.66% b. [(1.45*1.06)/(36.82*.96)]+.06=.1035 or 10.35% c. (.06*200)/(225*.85)=.0627 or 6.27% 2- - a. FV=-1000, PMT=-80, N=10, PV=(965*(1-.1), I=>10.15*(1-.34)=6.69 b. (2.24/18.80)+.04=.1591 or 15.91% c. (.08*150)/100=.12 or 12% 3- [(1.15*1.05)/(32*(1-.04))]+ .05=.0894 or 8.94% 4- FV=-1000, PMT=-100, N=20, PV=1041.25, I=>.0953*(1-.25)=.0715 or 7.15% 5- 1.45/58=.025 or 2.5% 6- FV=-1000, PV=850, PMT=-80, N=10, I=>10.49*(1-.4)=.063 or 6.3% 7- 8/90=.0889 or 8.89% 8- (1.08/26.4)+.08=.1209 or 12.09%

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Unformatted text preview: 9-.2(.35)+.4(.06)*(1-.4)+.12(.25)=.1144 or 11.44% 10- .5(.16)+.35(.1)*(1-.35)+.15*(.08)=.1148 or 11.48% 11-PMT=-50, FV=-1000, N=40, PV=1,100, I=>.0446*2=.0892 or 8.92%; (1.75/55)+.06=.0918 or 9.18%; .35(.0892)*(1-.25)+.65(.0918)=.083 or 8.3% 12-Bonds: 6mil/16mil= .375; PV=785, PMT=-45, FV=-1000, N=30, I=>6.07*2*(1-.4)=. .0728 or 7.28%; Preferred Stock: 2mil/16mil=.125; (1.75/80)=.0219 or 2.19%; Common Stock: 8mil/16mil=.5; (4.43/120)+.03=.0669 or 6.69%; WACC=.375(.0728)+.125(.0219)+.5(.0669)= . 0634 or 6.34%...
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## This note was uploaded on 10/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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Ch9.Answers (1) - 9.2.35.4.06(1.4.12.25)=.1144 or 11.44...

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