• Identify the sources of finance available to a company? [closed]

i like this post (click again to cancel)
0
i dont like this post (click again to cancel) remove favorite mark from this question (click again to restore mark)

question closed because it is really multiple questions. Please ask separate questions such as "how do I calculate the weighted average cost of capital?"

XYZ telecom is considering a project for the coming year that will cost $ 80 million. XYZ Plans to use the following combination of debts and equity to finance the investment. • Issue $ 35 million of 20-years bonds at a price of 101, with a coupon rate of 8 percent, and flotation costs of 2 percent of par. • Use $ 45 million of funds generated from earning ( that considered as an equity ) Assume that the after-tax cost of debt is 7 percent and the cost of equity is 12 percent

• Identify the sources of finance available to a XYZ? • Assess the implications of the different sources of finance for XYZ? • Select appropriate sources of finance for a XYZ company? • Assess and compare the costs of different sources of finance for XYZ? • Describe the impact of the type of finance on the financial statements of XYZ? • Explain the concept of weighted Average cost of capital? And calculate it?

asked Mar 08 '11

abd gravatar image

abd
1 1 1 1

updated Mar 11 '11

graeme gravatar image

graeme
4178 3 10

The question has been closed for the following reason "not a real question" by graeme close date 2011-03-11 09:09:10.338941

Tags:

×3

Asked: Mar 08 '11

Seen: 554 times

Last updated: Mar 11 '11

powered by ASKBOT version 0.6.61
Copyright Graeme Pietersz and contributors, 2010.