Creating estate plan even though he has substantial assets

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Reference no: EM131925320

1. Project L costs $75,000, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 14%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. %

2. Rumolt Motors has 45 million shares outstanding with a share price of $ 48 per share. In? addition, Rumolt has issued bonds with a total current market value of $ 3 comma 075 million. Suppose? Rumolt's equity cost of capital is 12 % ?, and its debt cost of capital is 8 % . a. What is? Rumolt's pre-tax? WACC? b. If? Rumolt's corporate tax rate is 35 % ?, what is its? after-tax WACC?

3. Billy is a frugal old coot who refuses to spend any money creating an estate plan even though he has substantial assets. He has heard that he can just write his own will and sign it and it will be effective. What is he referring to?

Reference no: EM131925320

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