PRACTICAL QUESTIONS – WEEK 10

Calculate the price of a bond and determine the after-tax cost of debt for Smith Stationary Ltd. Calculate Wagon Corporation's WACC for a new investment project.

FINANCIAL MANAGEMENT                               By (Student's Name)

FINANCIAL MANAGEMENT.

BAO5534 Business Finance Assignment: Sun Ltd

This document provides a detailed explanation of the calculation of Weighted Average Cost of Capital (WACC) for Perfect Image NZ Ltd. It includes step-by-step calculations for determining the cost of equity, cost of debt, and cost of preference shares. The document also discusses the factors affecting the cost of capital and provides a comprehensive analysis of portfolio returns and risks.

Finance

Weighted Average Cost of Capital

Giving recommendations in relation to make investment in the company’s shares 9 QUESTION 3 10 Giving recommendations to JB Hi Fi Ltd regarding capital structure by using trade-off theory 10 Table 1Current value of bond 4 Table 2 Calculation of weighted average cost of capital 6 Table 3 Free cash flow and data of cash, debt and shares outstanding 7 Table 4 Cost of equity 7 Table 5Computation of enterprise value 8 Table 6Input for WACC 8 Table 7Calculaiton of WACC 8 Table

FINANCIAL MANAGEMENT.

BAO5534 Business Finance Assignment: Sun Ltdlg...

Weighted Average Cost of Capitallg...

Valuation of shares of JB Hi Fi Ltdlg...

BAO5534 Business Finance Assignment: Sun Ltd

Weighted Average Cost of Capital

Valuation of shares of JB Hi Fi Ltd