User Account

All Pages

What is the cost of capital for project

Assignment Help Finance Basics
Reference no: EM132999156

Your local municipality is building a new complex housing the homeless. The municipality is listed on the local exchange with an equity return of 8%. For building the new complex, the municipality raises 50% of the capital through bank loans (the bank pays 4% on deposits and charges 6% on loans). 20% of the capital comes from donations from public for which the public get tax benefits. If the tax rate for the municipality is 20% and the remaining capital is sourced from equity holders of the municipal corporation, what is the cost of capital for this project?

Reference no: EM132999156

Questions Cloud

Compute the dollar-denominated npv of project : Find the dollar cash flows to compute the dollar-denominated NPV of this project.
What is the annual rate of return of investment : The investment product sold by Citigroup requires an outlay of $100,000 today, but generates a payout of $80,000 next year. What is the annual rate of return of
What is woori bank estimated cost of equity : Woori Bank's stock is trading at $62.10 a share and currently pays $3.60 annually in dividends. This dividend is expected to continue to grow at an average rate
What amount of warranty expense should shown on acorn : These units were repaired or replaced at a cost of ?32,500. What amount of warranty expense should be shown on ACORN's 2021 income statement?
What is the cost of capital for project : Your local municipality is building a new complex housing the homeless. The municipality is listed on the local exchange with an equity return of 8%. For buildi
What is the annual operating cash flow : Potato Game, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $6.089 million. The fixed asset will be de
Determine the set of all interest rates : Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $6 at t=2, and $10 at t=3.
Describe lifo and fifo inventory methods : Provide one example of a business that uses LIFO and 1 example of a business that uses FIFO. Explain LIFO and FIFO inventory methods.
Credit risk analysis question : In a crowded and competitive market like India , 95% of participants do not follow the risk based pricing . There is a change in the management of an existing p

Reviews

Write a Review

Finance Basics Questions & Answers

  Finding the value of the annuity today

You buy an annuity that will pay you $20,000 a year for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today?

  How much must your fist deposit be

How much must your fist deposit be if you are to meet your goal? Round your answer to the nearest cent.

  Calculate the operating cycle and the cash cycle

Calculate the operating cycle and the cash cycle in terms of days for Jumping Sports Inc based on the below. Use a 365 day year.

  What amount should be used as the initial cash flow

She wants to build a new facility on that site. The building cost is estimated at $1,170,000. What amount should be used as the initial cash flow

  Calculate the income gap

A bank’s balance sheet contains interest-sensitive assets of $280 million and interest-sensitive liabilities of $465 million. Calculate the income gap.

  Current estimate of the volatility

Suppose that the current estimate of the volatility is 1.6% per day and the most recent percentage change in the market variable is 1%.What is the new variance estimate?

  Lasa-strategic analysis-organizational-competitive

The goal of conducting a competitor analysis is to gather information about the company's competitors and systematically formulate a strategy to become the market leader in the industry.

  Determine a bank cd that pays an interest rate

Your friend asked you to help with selecting an investment. She has $7700 to invest today for a period of 2 years. You determine a bank CD that pays an interest

  What is the family disposable income

A company has beginning inventory of $28,000 and ending inventory of $61,000. If the COGS is $158,000, determine how many days the average item is in stock.

  Closing fees for the refinance

Today the mortgage rate declined to 2.4%. If your bank charges $12,000 of closing fees for the refinance, would you refinance your mortgage loan?

  What is the break-even volume

What would the total cost, total sales and profit (or loss) be for a weekly volume of 100,000 bars? What is the break-even volume?

  Potential types of pooling outcomes

There are two potential types of pooling outcomes to this game. Without doing any math, describe what they would look like, as completely as you can.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd