# Gilligan island power plant case

Don't use plagiarized sources. Get Your Custom Essay on
Gilligan island power plant case
Just from \$13/Page

Your boss believes the company’s power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it:

• You      can pay a pollution tax (Carbon Offsets) onetime of \$13,000,000      immediately.
• You      can close the plant and install a power cable from the mainland to the Island.      That will cost you \$1,000,000 at the end of this year, \$3,000,000 at the      end of next year and then \$750,000 forever for maintenance.
• You      can retrofit the plant with scrubbers to reduce the emissions to make the      plant green. That will cost \$7.5m at the end of this year and \$100,000 for      50-years for maintenance.

Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island’s plant. Assume, this comes as a surprise to you and you have not saved any money in reserves, and you need to raise capital. Additional information is that market has a 12 percent market risk premium on the power plant with the risk-free rate being 5 percent with a company tax rate of 35 percent.

Current total raised capital at the power plant: (This will help you calculate the WACC)

• Debt      – 7,000 outstanding bonds, at 7.5% coupon and 20 years to maturity. These      bonds pay interest semiannually and quoted a price of 108 percent of par.
• Common      Stock -180,000 shares outstanding, selling for \$50 per share: Beta .90.
• Preferred      Stock – 8,000 shares of 5.5 percent preferred stock outstanding, currently      selling for \$95.00 per share.

Please answer in essay format and provide your Excel document showing all your calculation in appendixes choose the best option for Island. Support your answer with your calculations. Also, to calculations use specified resources, other appropriate scholarly resources, including older articles.Length: However long you need to answer the question (Paragraph per option is normal).

Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to University’s Academic Integrity Policy.

• The      introduction should state the answer and establish the topic and a clear      thesis statement.
• The      conclusion summarizes the main points and leaves the reader with a strong      comprehension of the paper’s significance and the author’s understanding      of the correct financial decision.
• All      research is correctly credited, using correct APA format.
• Grammatically      correct – No spelling, grammar, or mechanics errors

Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@myessay.help.

Try it now!

## Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Follow these simple steps to get your paper done

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

## Essay Writing Services

At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.