NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is 10%. The cash flow, net of income taxes, will be P15,000 for the first year and P18,000 for the second year. Use 3 decimal places for the PV factors. Assuming the rate is exactly 12%, what would be the cash flow, net of income taxes, be for the third year?
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is 10%. The cash flow, net of income taxes, will be P15,000 for the first year and P18,000 for the second year. Use 3 decimal places for the PV factors. Assuming the rate is exactly 12%, what would be the cash flow, net of income taxes, be for the third year?
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