TTC is planning to raise $3.25 million for three years at an interest rate of 7.35 percent to finance their expansion. The Alban
County Board of Commissioners has just offered the firm the $3.25 million they need at 5.25 percent if the firm builds in Alban County, pays the interest annually, and repays the principal at the end of three years. What is the net present value of the loan to TTC if the firm’s tax rate is 34 percent and it accepts the county’s offer?
$329,245.19
$186,415.92
$293,651.12
$346,089.97
$212,100.00
$329,245.19
$186,415.92
$293,651.12
$346,089.97
$212,100.00
1 answer:
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Answer:
The answer is "$84,000 in the numerator and 60,000 in the denominator".
Explanation:
If securities are transformed into stocks. So, the common stack holder should be have a larger net revenue, calculation of net revenue
In addition, the loads will also raise the total amount of shares which is calculated as follows:
Formula:
That's why in this question numerator is = $ 84, 000 and denominator = $ 60,000