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yds3484

Net present value

A company is considering the purchase of a new machine with a initial outlay of $4500 and expected cash flows in years 1-4 of $2200 per year. The risk adjusted discount rate for the firm is 12 percent...
15:26 Sat 28th Feb 20094 answers, last by factor30 09:17 Sun 01st Mar 2009
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yds3484

Cost of debt

If a company has $5 million of debt outstanding with a coupon rate of 12 percent. currently the yeild to maturity on these bonds is 14 percent. If the firms tax rate is 40 percent, what is the cost of...
15:15 Sat 28th Feb 20091 answer, last by factor30 17:18 Sat 28th Feb 2009

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