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What is this company cost of debt

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Question - A company has a total budget for new projects of $100,000 and four potential projects it can pursue. The projects are not mutually exclusive, except that each costs $50,000 to pursue so the company can only choose 2. Project A has NPV of $20,000, IRR of 10%, and profitability index of 1.5. Project B has NPV of $25,000, IRR of 8%, and profitability index of 1.2. Project C has NPV of $10,000, IRR of 20%, and profitability index of 2. Project D has NPV of $30,000, IRR of 12%, and profitability index of 1.3. Which projects should the company pursue and why?

A company has debt represented by one bond issue outstanding. The bonds have a coupon rate of 5% and a YTM of 7%. The interest expense for the year was $50,000. What is this company's cost of debt?

Reference no: EM133012038

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