Much interest will you have earned in two yrs

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Reference no: EM1314890

Q. 1) You deposit $1000 in an account today. You will deposit $600 at the end of each month for next 12 months also $800 each month for the subsequent12 months. Elucidate how much interest will you've earned in two yrs if the account pays 5.5percent (%) compounded monthly?

2) Jen also Barry's Ice Cream wants $20 million in new capital to expand its production facilities. It will utilize40percent (%) debt also 60percent (%) equity. The company's after-tax cost of debt is 5percent (%) also the cost of equity is 12.5percent (%). Flotation costs will be 3percent (%) for debt also 9percent (%) for equity. Compute Jen also Barry's weighted average flotation cost.
a. 6.6percent (%)
b. 6.0percent (%)
c. 16.1percent (%)

Reference no: EM1314890


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