According to ______, firms typically use internal financing before they use debt and equity financing from external markets.

Given the following information, what is the firm’s weighted average cost of capital? Market value of equity = $60 million; market value of debt = $20 million; cost of equity = 15%; cost of debt = 5%; equity beta = 3.1; tax rate = 35%.

You purchased a bond for $870 one year ago. Today, you receive your only interest payment for the year of $70. The bond can currently be sold for $950. What is your total percentage return on investment? Ignore tax effects.

A project requires an initial investment of $9 million. The target D/E ratio is 0.60. Flotation costs for equity are 7% and flotation costs for debt are 3%. What is the true cost (in dollars) of the project when you consider flotation costs?

Your required return is 14%. Should you accept a project with the following cash flows?                         Year                                 0                1                2                3                                   Cash Flow                     -$25           +$8            +$8           +$15            

What is the future value at the end of year 4 of the following set of cash flows? Assume an interest rate of 7%. Year                                 1                2                3                4          Cash Flow                    +$900         -$900         +$800           -800

You purchased a bond for $870 one year ago. Today, you receive your only interest payment for the year of $70. The bond can currently be sold for $935. What is your total percentage return on investment? Ignore tax effects.

According to the Personal Finance lecture, you know you are financially free when

The financial freedom formula shown in the Personal Finance lecture indicates that

Given the following information and assuming straight-line depreciation to zero, what is the NPV for this project? The initial investment in fixed assets is $30,000, the initial investment in net working capital is $5,000, the life of the project is expected to be 4 years, and the OCF per year is $9,000. The equipment can be sold for $2,000 at the end of the project. Assume a tax rate of 20%, and a discount rate of 8%.