What is the annual percentage cost of debt to the company

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-What is the present value of the stream of income if the stadium can sell 10 new luxury suites at $30,000 a year for 10 years with an assumed 8% rate of return?

-If the stadium owners have $1,000,000 to build the new luxury suites from the problem above (#1) is it a good investment? Show and explain your answer.

-What is the cost of debt on a $1,000,000 loan with 6% interest rate and a marginal tax rate of 40%? D = R x (1-T) (1 pt)

-How much will the company save in tax deduction each year from the original $1,000,000? (1 pt)

-What is the average days of sales outstanding if the terms are 2/10/30 and 60% of the customers take advantage of the discount?

-Assume 25 year bond with a value of $1,000 and a semiannual payment of 6%. How much will the bond holder receive every year? How much will the bond holder receive over the life of the bond? What is the annual percentage cost of debt to the company?

Reference no: EM132674994

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