MGT325 M5 spreadsheet - use as a guide only

Feb 3rd, 2012
Studypool Tutor
Price: $10 USD

Tutor description

_______ Manufacturing is going to introduce a new product line and to accomplish this it has four projects analyzed in which it wants to invest a total of $100 million. Your job is to find what it will cost to raise this amount of capital based on the cost of the capital as outlined below:

Word Count: 871
Showing Page: 1/6
MGT 325 Module 5 Spreadsheet Exam - this is one long problem or case study. Please show aPlease place your answers to each question in each part in the outlined boxes in the yellow spYou should refer to the M5CapitalEvaluationWorksheet in Excel, which contains examples ofTo do this exam you also need to study the Practice Problems and Solutions at the end of Chapter Eleven.when calculated is before-tax and has to be converted to an after-tax return. The returns on preferred ancommon stock are already after tax so are not adjusted, which is explained in Chapter Ten.PROBLEM FOR CHAPTERS TEN AND ELEVEN_______ Manufacturing is going to introduce a new product line and to accomplish thisit has four projects analyzed in which it wants to invest a total of $100 million. Your job is tofind what it will cost to raise this amount of capital based on the cost of the capital as outlinedbelow:PROJECTSAINVESTMENTEXPECTED RETURN$30,000,00010.00%The firms capital structure consists of:CAPITAL STRUCTUREDEBTPREFERRED STOCKCOMMON STOCKOther information about the firm:CORPORATE TAX RATE35%DEBTCURRENT PRICE$900.00ANNUAL INTEREST9.00%ORIGINAL MATURITY25MATURITY VALUE$1,000.00FLOTATION COSTSINSIGNIFICANTMARKET YIELD PROJECTED:UP TO $20 MILLION9%ABOVE $20 MILLION12%CURRENT PRICEPREFERRED STOCK$50.00LAST DIVIDEND (D0)FLOTATION COSTNEXT DIVIDEND (D1)CURRENT PRICELAST DIVIDEND (D0)RETAINED EARNINGSGROWTH RATE (g)FLOTATION COSTSNEXT DIVI

Review from student

Studypool Student
" Thanks, good work "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors