Answered You can hire a professional tutor to get the answer.

QUESTION

It is in excel so it would look like NPV(rate, value 1, value 2, etc.) I do not know what to put in for the value(s) .

I need help with finding out what the NPV is for this problem . It is in excel so it would look like NPV(rate, value 1, value 2, etc.) I do not know what to put in for the value(s) .

Shares outstanding                11,000,000

Share price                             $  48.50

Purchase price                       $45,000,000

Increase in cash flow               $10,000,000

Current cost of capital             10.50%

YTM on new debt                    7.00%

 Equity weight in new capital structure 70%

Tax rate                                   40%

The after tax earnings increase is 6,000,000

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question