Be detail as possible and show all work.
2. What is the present value of $200,000 received at the end of every 6 month for the next 8 years at a discount rate of 7%?
5. Find MNO's Weighted Average Cost of capital given the following information:
Tax Bracket: 30%
Percent of Company financed By Stock: 60%
Percent of Company financed by Bonds: 25%
Percent of Company financed by Preferred Stocks: 15%
Stock Required Rate of Return: 15%
Bond Yield: 7%
Preferred Stock Yield: 11%
6. You are making a decision for a part of your company's pension plan. You have a choice of buying an annuity for $800,000 that will pay $100,000 at the end of each year for the next 10 years. You also have other investment opportunities that will yield 8% over the next 10 years. Therefore, you will use 8% as your discount rate when making your decision. Which option will you choose and why? (Make sure you show your math)
Please see the attached file.
"As IRR is less than the ...
This provides the steps to calculate the MNO's Weighted Average Cost of capital