McNamara Hotels has 750,000 bonds outstanding, each with a $1,000 face value and 10 years to maturity. The bonds pay semi-annual coupon payments at an annual coupon rate of 8.42%. Currently, the bonds are trading on the secondary market at $1,032 per bond. The company has no other debt outstanding.What is the company’s annual cost of debt?Hint: Enter your answer as a percentage rounded to two decimals. Note: this is not an accounting question—I’m not looking for interest expense in dollars.

What could happen to “unused” dollars after a firm has chosen capital projects but still has remaining unallocated funds? 

Highland Courier Co. is a premium magical delivery service that specializes in secure, high-speed transport of rare goods—like spell scrolls, enchanted herbs, and royal messages—across the mountainous kingdoms. The company is planning to invest in a new griffin-powered delivery fleet, which will cost $7,775,000 upfront, including training, saddles, and a lifetime supply of enchanted salmon feed.The company projects that the griffin fleet will generate stable annual cash flows of $1,850,000 over the next 6 years, after accounting for all expenses, including griffin care, flight permits, and beak polishing. What is the internal rate of return (IRR) for this investment? Hint: Enter your answer rounded to two decimal places.

McNamara Hotels has 750,000 bonds outstanding, each with a $1,000 face value and 10 years to maturity. The bonds pay semi-annual coupon payments at an annual coupon rate of 8.77%. Currently, the bonds are trading on the secondary market at $1,062 per bond. The company has no other debt outstanding.What is the company’s annual cost of debt?Hint: Enter your answer as a percentage rounded to two decimals. Note: this is not an accounting question—I’m not looking for interest expense in dollars.

Using beta as a risk measurement device has not caught on in the real world because finding the value is nearly impossible for most investors.

The ________ starts at the time production begins and ends with the collection of cash from the sale of the product.

________ refers to the way a company finances itself through some combination of loans, bond sales, preferred stock sales, common stock sales, and retention of earnings.

Highland Courier Co. is a premium magical delivery service that specializes in secure, high-speed transport of rare goods—like spell scrolls, enchanted herbs, and royal messages—across the mountainous kingdoms. The company is planning to invest in a new griffin-powered delivery fleet, which will cost $7,250,000 upfront, including training, saddles, and a lifetime supply of enchanted salmon feed.The company projects that the griffin fleet will generate stable annual cash flows of $1,850,000 over the next 6 years, after accounting for all expenses, including griffin care, flight permits, and beak polishing. What is the internal rate of return (IRR) for this investment? Hint: Enter your answer rounded to two decimal places.

Manta Lasers Co., a mid-sized tech manufacturer specializing in precision laser equipment, has spent the past two years in R&D developing a new, highly efficient industrial laser designed for use in surgical manufacturing and aerospace applications. Based on successful prototype testing and positive early interest from potential clients, the company is now considering moving forward with production.The required upfront investment for production and launch is $1,005,000.Drawing from historical data and market analysis, the firm has forecasted the following annual free cash flows from the project over the next six years (after all operating and capital expenses):Year 1 to Year 6: $200,000, $250,000, $275,000, $300,000, $350,000,  and $400,000. If the company’s cost of capital is 10.25%, what is the Net Present Value (NPV) of this investment? Hint: Enter your answer rounded to two decimal places.

Dragon Flights Ltd. is a premium adventure tourism company known for offering high-flying dragon rides across volcanic mountains and ancient kingdoms. To expand its elite fleet, the company is considering the purchase of a new fire-breathing dragon, specially bred for long-haul flights and crowd-pleasing aerial acrobatics.The initial investment required for acquiring, training, and outfitting the dragon is $5.9 million.Based on projected bookings and merchandise sales, the company expects the dragon to generate $1.5 million in net cash flow in its first year of operation. After that, thanks to growing popularity and ticket price hikes, cash flows are expected to grow by 5.3% annually.Dragons in commercial use typically remain flight-worthy for 6 years, after which they retire to the Royal Dragon Preserve. If the cost of capital is 8.53%, what is the Net Present Value (NPV) of this legendary investment? Hint: Enter your answer rounded to two decimal places.