You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company: ·         R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a loan amortization scheduleq

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company:

·         R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%.

Prepare a loan amortization scheduleq 

 

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 the annuity factor is 3.7908 

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