The coupon rate on a debt issue is 8%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 38%? (Round your answer to 2 decimal places.)

## Calculate the groupon campaign profit and lossA local dental practice decides to run a Groupon campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $140. For the total campaign, 250 coupons were sold. Calculate the Groupon campaign profit/loss |

## What makes healthcare a riskyCompared with other industries, how 'risky' is healthcare to other people who may be ready to lend monies to a healthcare organization or to those who wish to invest monies in a healthcare organization? What makes healthcare a risky or non-risky indu.. |

## What would be the present value if it were an annuity dueWhat is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due? |

## Cumulative preferred stock issue outstandingNational Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. If NHC earns $1.. |

## Regard to payroll and accounts payable functionsSasha Company allocates the estimated $196,400 of its accounting departments costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable fun.. |

## How to hedge its asset exposure in the forward marketA U.S firm owns a piece of land in Israel. The price (in unit of million) of the land is expected to be: State of Economy Probability Exchange Rate P^IS P^$ State 1 25% $0.30/IS IS 2,000 $600 State 2 50% $0.20/IS IS 5,000 $1,000 State 3 25% $0.15/IS .. |

## Cash flow hedge or fair value hedgeNext, identify, using the FASB codification, the type of hedge it would be—cash flow hedge or fair value hedge. |

## What is the expected return for the overall stock marketAssume that the risk-free rate is 2.5% and the market risk premium is 4%. What is the expected return for the overall stock market? What is the required rate of return on a stock with a beta of 1.1? |

## The nominal return on your investmentYou want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 4 percent. What real amount must you deposit each year to achieve your goal? |

## What is the value of stock when the required returnFinancial analysts forecast ABC Inc. growth for the future to be 12%. ABC's recent dividend was $1.50. What is the value of ABC stock when the required return is 15%? |

## What is effective annual yieldBourdon Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.2 percent of par. What is the effective annual yield? |

## Considering an expansion at its manufacturing facilityTerragon Plastics Inc. is considering an expansion at its manufacturing facility. The equipment would be purchased for $8.5 million. An initial net operating working capital investment equal to 10% of the estimated sales of $15 million in the first y.. |

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