What is corps wacc after tax

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Reference no: EM132061238

1. Your company takes out a $ 1 8,000 interest only loan over 4 years. The current prime rate is 6% APR compounded monthly. The total interest paid is closest to:

a. 1,713

b. 2,291

c. 3,240

d. 3,438

e. 4,320

f. 4,725

2. XYZ Corp has a market capitalization of $130 million, and $40 million in outstanding debt. The firms equity beta is 0.92 , risk free rate is 2%, and market risk premium is 5%. The yield on firms outstanding debt is 6.5%. What is ABC Corps WACC after tax? Assume tax rate is 35% Show your work

3. You are presented a proposal for a project. The project costs $10,000,000 and will produce after-tax cash flows of $$2,000,000 at the end of year 1, $4,000,000 at the end of year 2, and $8,000,000 at the end of year 3. What is the NPV of this project if your WACC is 14.5%?

Reference no: EM132061238

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