{"id":7275,"date":"2021-10-12T17:52:23","date_gmt":"2021-10-12T17:52:23","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/unit-8-hw-finance-accounting-homework-help\/"},"modified":"2021-10-12T17:52:23","modified_gmt":"2021-10-12T17:52:23","slug":"unit-8-hw-finance-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/unit-8-hw-finance-accounting-homework-help\/","title":{"rendered":"Unit 8 hw finance | Accounting homework help"},"content":{"rendered":"<div>\n<p>\u00a0<\/p>\n<p><strong>Assignment: The Angel Investor<\/strong><\/p>\n<p>The concept of after-tax Weighted Average Cost of Capital (WACC) is a common issue when studying finance at all levels. The impact of taxes, applicable to most forms of financing is a key component of studies in the field of finance. The Assignment will present the opportunity to assess and build upon your knowledge of and ability to calculate the after-tax WACC and the cost of debt and equity.<\/p>\n<p>The following course outcome is assessed in this Assignment:<\/p>\n<p><strong>MT480-6:<\/strong> Incorporate the combined attributes of debt and equity given a cost of capital model.<\/p>\n<p>Read the scenario and address the checklist items.<\/p>\n<p><strong>Scenario:<\/strong> As an <em>Angel Investor<\/em> you have been asked to assess an entrepreneur\u2019s product and financing options. In your role as an <em>Angel Investor<\/em> you focus on one year at a time. The entrepreneur asks for $100,000 immediately to purchase a diagnostic machine for a healthcare facility. The entrepreneur hopes to be financed with 60% debt and 40% equity. As the entrepreneurs\u2019 venture capital partner, you assign a cost of equity of 15% and a cost of debt at 10%. You require a Return on Investment (ROI) of 8%. You are using an After Tax Weighted Average Cost of Capital (AT- WACC) model. A 35% marginal tax rate is applied Address the following checklist items:<\/p>\n<p><strong>Checklist:<\/strong><\/p>\n<ul>\n<li>Explain the tax benefits of debt financing.<\/li>\n<li>Calculate the AT- WACC with a 60% debt and 40% equity financing structure.<\/li>\n<li>Apply the calculated AT-WACC to explain why this is or is not a viable investment for you as the Angel Investor.<\/li>\n<li>Explain what the entrepreneur\u2019s financial restructuring AT- WACC (% Debt and % Equity) need to be in order to create a positive ROI.<\/li>\n<li>Explain why you as the Angel Investor would require more or less debt vs. equity financing. Be sure to note the nature of the claims on assets in times of a bankruptcy.<\/li>\n<li>Submit your response in a minimum of a 2-page APA formatted Microsoft\u00ae Word\u00ae document to the Dropbox with additional title and references pages.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Assignment: The Angel Investor The concept of after-tax Weighted Average Cost of Capital (WACC) is a common issue when studying finance at all levels. The impact of taxes, applicable to most forms of financing is a key component of studies in the field of finance. The Assignment will present the opportunity to assess and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-7275","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/7275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=7275"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/7275\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=7275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=7275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=7275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}