Peacock has a target ratio of 7:2:3 for its common equity, preferred stock, and long term debt.

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Peacock has a target ratio of 7:2:3 for its common equity, preferred stock, and long term debt. Its cost of equity, preferred stock, and long term debt are 15%, 12% and 7%; respectively. What is Peacock's WACC? If Peacock is offared a project similar to its existing operation with the following estimated free cash flow:
Year CF 1 3 CF -10000 2000 2000 3000 3000 4000

Would Peacock accept the project?

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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