Business Finance II – savvyessaywriters.net | Savvy Essay Writers
Business Finance II – savvyessaywriters.net | Savvy Essay Writers
Savvy Essay Writers Business & Finance Assignment Help
1. How is an investor’s required return rate of return related to an opportunity cost?2. How do flotation costs impact the firm’s cost of capital?3. Belton is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15 years. Investors are willing to pay $958 for the bond. Flotation costs will be 11 percent of market value. The company is in an 18 percent tax bracket. What will be the firm’s after-tax cost of debt on the bond?4. A preferred stock paying a 9 percent dividend on a $150 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $175. What is the cost of capital for the company?5. The capital structure for the Carion Corporation is provided here. The company plans to maintain its debt structure in the future. If the firm has a 5.5 percent after-tax cost of debt, a 13.5 percent cost of preferred stock, and an 18 percent cost of common stock, what is the firm’s weighted average cost of capital?Outcome: Investment in Long-Term Assets/Capital Investment Analysis / Capital Investment Decision Analysis and Free Cash Flows / Financial Leverage and Capital Structure Policy· All tasks are individual.· Each assignment should be submitted by means of a word document. If you need to do some calculations you can attach an Excel document. Please note that the numerical solution should be established in the word document.Formalities:· Wordcounts: 2000 words.· Cover, Table of Contents, References and Appendix are excluded of the total wordcount.· Font: Arial 12,5 pts.· Text alignment: Justified.· The in-text References and the Bibliography have to be in Harvard’s citation style.