2. Venture capital required rate of return. Red Devil Investors has a success r

2. Venture capital required rate of return. Red Devil Investors has a success rate of one project for
every four funded. Red Devil has an average loan period of two years and requires a portfolio return of 24.6%. If you borrow from Red Devil what is your
annual cost of capital? NOTE: Show all work

10. Selling bonds. Lunar Vacations needs to raise $5800000 for its new project (a golf course on the
moon). Astro Investment Bank will sell the bond for a commission of 2.4%. The market is currently yielding 7.7% on twenty-year semiannual bonds. If Lunar wants
to issue a 6.4% semiannual coupon bond how many bonds will it need to sell to raise the $5800000? Assume that all bonds are issued at a par value of $1000
NOTE: Show all work

12. Selling bonds. Rawlings needs to raise $36400000 million for its new manufacturing plant in Jamaica. Berkman
Investment Bank will sell the bond for a commission of 2.1%. The market is currently yielding 7.6% on twenty-year zero-coupon bonds. If Rawlings wants to issue
a zero-coupon bond how many bonds will it need to sell to raise the $36400000? Assume that the bond is semiannual and issued at a par value of $1000.
NOTE: Show all work

17. Commercial paper. Criss-Cross Manufacturers will issue commercial paper for a short-term cash inflow. The paper is for
ninety-one days and has a face value of $50.000 and the company anticipates it to sell at 95.6% of par value. Criss-Cross wants to raise $3400000. What is
the cost of this borrowing (annual terms)? How may %u201Cpapers%u201D will it sell? NOTE: Show all work