Question

Soru 1 12.5 Puan ABC company would like to invest in a project that requires \$50000 capital investment. This capital will be raised partially by selling company bonds and partially by borrowing a loan. $\bullet$ ABC will sell 70 bond contracts, each from \$500. Having a face value of \$800, the bonds will mature in 8 years, and during that period, will pay \$15 annual dividend to the holder at the end of each year. 5\% of the bond revenue will be paid as transaction broker's fee, and the remaining amount will be transferred to company accounts. $\bullet$ The remaining part of the required capital will be borrowed from a credit company who will expose ABC to 15\% nominal interest that compounds annually. What is the cost of the whole capital of \$50000? Choose the closest value to your answer. A) 9.69\% B) 9.95\% C) 11.47\% D) 11.21\% E) 9.43\%

          Soru 1
12.5 Puan
ABC company would like to invest in a project that requires \$50000 capital investment. This capital will be raised partially by selling
company bonds and partially by borrowing a loan.
\(\bullet\) ABC will sell 70 bond contracts, each from \$500. Having a face value of \$800, the bonds will mature in 8 years, and
during that period, will pay \$15 annual dividend to the holder at the end of each year. 5\% of the bond revenue will be
paid as transaction broker's fee, and the remaining amount will be transferred to company accounts.
\(\bullet\) The remaining part of the required capital will be borrowed from a credit company who will expose ABC to 15\%
nominal interest that compounds annually.
What is the cost of the whole capital of \$50000? Choose the closest value to your answer.
A) 9.69\%
B) 9.95\%
C) 11.47\%
D) 11.21\%
E) 9.43\%

Soru 1
12.5 Puan
ABC company would like to invest in a project that requires $50000 capital investment. This capital will be raised partially by selling
company bonds and partially by borrowing a loan.
∙ ABC will sell 70 bond contracts, each from $500. Having a face value of $800, the bonds will mature in 8 years, and
during that period, will pay $15 annual dividend to the holder at the end of each year. 5% of the bond revenue will be
paid as transaction broker's fee, and the remaining amount will be transferred to company accounts.
∙ The remaining part of the required capital will be borrowed from a credit company who will expose ABC to 15%
nominal interest that compounds annually.
What is the cost of the whole capital of $50000? Choose the closest value to your answer.
A) 9.69%
B) 9.95%
C) 11.47%
D) 11.21%
E) 9.43%

Added by Ver-Nica A.

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