HW3 - Question 2 Question 3 Question 1 No Project w/Proj A...

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Unformatted text preview: Question 2 Question 3 Question 1 No Project w/Proj A w/Proj B Before neg NPV After neg NPV S $5,000,000.00 $40,000,000.00 $55,000,000.00 $45,000,000.00 $30.00 $25.00 X $7,000,000.00 $50,000,000.00 $50,000,000.00 $50,000,000.00 $50.00 $50.00 r 3% 5% 5% 5% 4% 4% sig 30% 30% 60% 40% 30% 50% T 4 8 8 8 5 5 d1-0.0637283794 0.6212849507 1.1346892391 0.8175575655-0.1337497472 0.1144476702 d2-0.6637283794-0.2272431867-0.5623670358-0.3138132844-0.8045701404-1.0035863186 N(D1) 0.4745932536 0.7327939231 0.8717472262 0.7931950668 0.446800233 0.5455585366 N(d2) 0.2534320861 0.4101173239 0.2869329868 0.3768314271 0.2105338894 0.1577890259 C 796768.3856154 15432579.531635 38235720.453071 22941060.872448 4.7518314611 7.1544095372 Equity E=C $796,768.39 $15,432,579.53 $38,235,720.45 $22,941,060.87 $4.75 $7.15 Debt D=S-E $4,203,231.61 $24,567,420.47 $16,764,279.55 $22,058,939.13 $25.25 $17.85 Cost Rd=ln(X/D)/T 12.75% 8.88% 13.66% 10.23% 13.67% 20.61% S1 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100...
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This note was uploaded on 11/29/2011 for the course HADM 4630 taught by Professor Ukhov during the Fall '11 term at Cornell University (Engineering School).

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HW3 - Question 2 Question 3 Question 1 No Project w/Proj A...

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