FIN 500-Module 12 - Critical Thinking.XLSX

FIN 500-Module 12 - Critical Thinking

Complete the following Study Problems from your textbook. The numbers in parentheses refer to the chapter and the problem number, for example 3-5 refers to Chapter 3, problem 5.

1.       Cost of debt (9-6)

2.       Cost of internal equity (9-8)

3.       Individual or component costs of capital (9-11)

4.       Weighted average cost of capital (9-16)

5.       Payback period, NPV, PI, and IRR calculations (10-5)

6.       NPV, PI, and IRR calculations (10-6)

7.       PI calculations (10-16)

8.       Mutually exclusive projects and NPV (10-29)

9.       Capital structure theory (12-6)

10.   Assessing leverage use (12-10)

You will likely use a spreadsheet for this assignment but you may choose to type up your answers in a Word document. In either case, be sure to show your work. Support your answers by showing the formulas you use and defining any variables in the formulas. Any essay responses should be supported with appropriate citations and references.
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