Suppose you borrow $50000 when financing a coffee shop which is valued at $75000. You expect to generate a cash flow of $84000 if demand is as expected. The cost of debt rate.3) What is the cost of equity?
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Consider a consumer who can purchase only two goods, x and y. If this consumer can, given her income, just afford two bundles (x, y) = (12, 6) and (x, y) = (9, 8). If Py =3, find the equation that describes her budget line, Please explain
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What is the value of a bond that has a par value of $1,000, a coupon rate of 17.65 percent (paid annually), and that matures in 4 years? Assume a required rate of return on this bond is 14.40 percent.
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Financial analysts forecast GDY Inc.’s growth for the future to be 3%. GDY's recent annual dividend was $2.00. What is the value of GDY stock when the required return is 11%?
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How do I figure out this problem? Johnson's Nursery has net income of $42,500, depreciation expense of $1,800, interest expense of $900, taxes of $1,600, additions to net working capital of $2,300, and capital expenditures of $11,700. What is the amo..
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George has a personal auto policy that provides the following coverage’s:liability coverage $150,000/$300,000/$50,000, $5,000 medical payments coverage, $25,000/$50,000 uninsured motorists coverage, $400 deductible for a collision loss, and a $50 ded..
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A pension plan is obligated to make disbursements of $1.7 million, $2.7 million, and $1.7 million at the end of each of the next three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how..
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David Salter has a PAP with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments and a $500 deductible for collision insurance. How much will his insurance cover in the following ..
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What APR is being earned on a deposit of $5,000 made 10 years ago today if the deposit is worth $9,948.94 today? The deposit pays interest semi-annually.
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One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25 percent. Your capital gain was $6 a share. What was your dividend yield on this stock?
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Compute the weighted average cost of capital on the first $250 million of funds and saven Travel will need to raise $150 of additional capital for expansion. How much of this will be debt and equity?
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You are given the following information for Lightning Power Co. Assume the company’s tax rate is 40 percent. Debt: 10,000 7.1 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 107 percent of par; the bonds make sem..
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