Strayer FIN100 week 6 Lab Assignment 5: Chapters 11 and 12
1. worth: 5.00 factors Oberon, Inc., has a $10 million (face worth) Eight-year bond concern promoting for 96 % of par that pays an annual coupon of Eight.00 %. What can be Oberon’s before-tax part price of debt? (Spherical your reply to 2 decimal locations.) 2. worth: 5.00 factors Suppose you promote a hard and fast asset for $128,00zero when its ebook worth is $148,00zero. In case your company’s marginal tax fee is 35 %, what would be the impact on money flows of this sale (i.e., what would be the after-tax money stream of this sale)? ATCF $ three. worth: 5.00 factors Diddy Corp. inventory has a beta of 1.four, the present risk-free fee is 5 %, and the anticipated return in the marketplace is 14.00 %. What's Diddy’s price of fairness? four. worth: 5.00 factors Your firm is contemplating a brand new undertaking that can require $912,00zero of recent tools initially of the undertaking. The tools could have a depreciable lifetime of 10 years and might be depreciated to a ebook worth of $142,00zero utilizing straight-line depreciation. The price of capital is 13 %, and the firm’s tax fee is 34 %. Estimate the current worth of the tax advantages from depreciation. (Spherical your reply to 2 decimal locations.) Current worth