BUS 401 Week 3 Assignment, Weighted Average Cost

Weighted average cost of capital

Cost of Debt:

NP0 =1035*(1-0.15)

$879.75

Before Cost of Debt9.49%Calculation IRR

After Cost of Debt (Kd) =9.49%*(1-0.34)YearCashflow

0($879.75)

6.260

280

Note: Cost of Debt Nothing but YTM380

480

580

680

780

880

980

1080

1180

1280

1380

1480

1580

161080

IRR9.49%