How much did your grandmother originally invest

Assignment Help Financial Management

Reference no: EM132020324

1. A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1,100, and an unlevered return of 12%. What is the WACC?

a. 10.15%

b. 9.24%

c. 11.41%

d. 10.99%

e. 11.84%

2. Today, your grandmother gave you a gift of $22,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8% interest 11 years ago. How much did your grandmother originally invest?

a. $9,225.00

b. $9,435.42

c. $9,504.55

d. $9,192.45

e. $9,419.25

Reference no: EM132020324

Questions Cloud

What is ernst pre-tax cost of debt : The bonds are currently quoted at 99 percent of face value. What is Ernst's pre-tax cost of debt?

What is the price of stock : Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 3% forever. what is the price of the stock?

Nominal return and the expected inflation rate : If investors require a 6.5% nominal return and the expected inflation rate is 3.5%, what is the expected real return?

What is the present value of the cca tax shield : What is the present value of the CCA tax shield on the machine if it is sold at the end of the sixth year for $24,000,

How much did your grandmother originally invest : Today, your grandmother gave you a gift of $22,000 to help pay for your college education. How much did your grandmother originally invest?

How much did your grandmother originally invest : How much did your grandmother originally invest?

What is the unlevered value of firm : A firm has a tax rate of 35%, an unlevered rate of return of 12%, total debt of $2,000, and an EBIT of $290.00. What is the unlevered value of the firm?

The firm weighted average cost of capital : What is the weight of the debt as it relates to the firm's weighted average cost of capital?

What is ernst pre-tax cost of debt : The bonds are currently quoted at 95 percent of face value. What is Ernst's pre-tax cost of debt?

User Account

All Pages