Transcript
  • 1

    THE UNIVERSITY OF HONG KONG

    FACULTY OF BUSINESS AND ECONOMICS

    FINA1003/1310A/B/C Corporate Finance

    FIRST SEMESTER, 2014-2015

    Tutorial 9 Suggested Solutions

    Question 1

    Question 2

    The after-tax rate is more relevant because that is the actual cost to the company.

  • FINA1003/1310 Corporate Finance Tutorial Problem Set 9 Suggested Solutions

    2

    Question 3

  • FINA1003/1310 Corporate Finance Tutorial Problem Set 9 Suggested Solutions

    3

    Question 4

    (a)

    (b)

  • FINA1003/1310 Corporate Finance Tutorial Problem Set 9 Suggested Solutions

    4

    Question 5

    (a) He should look at the weighted average of the flotation cost, not just the debt cost.

    (b)

    (c)


Top Related