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9. What is the WACC of company “XYZ”?
12.18%
11.19%
10.4
12.0%

10. Calculate CAPM based on “XYZ” common equity?
11.4 %
17.5%
13%
12.04%

11. Of the following, what is the appropriate discount rate to evaluate this opportunity (of those provided here)?
Cost of marginal debt
the average return for the stock market (XYZ is a public company).
Beta of XYZ times the stock market average.
a minimum of 18%, the market cost of common equity.

12. Calculate the contribution of the exit, or sales, price in year 7 to the total NPV value for project “M”. (using a 20% discount rate).
$340.7
$5,803
$3,349
-$465

13. If “M’s” cash flows were double those that were given with half the capital investment, what is the NPV using 15% discount rate? (No exit value contribution)
$29,936
-$5,000
$5,100
$58,702