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1. Use the information below to calculate the weighted-average-cost-of-capial. Re=10%Rd=6% Tax =30% Common stock =$100,000 Retained eamings =$20,000 Long-term liabilities =$360,000 2. Evaluate a project

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1. Use the information below to calculate the weighted-average-cost-of-capial. Re=10%Rd=6% Tax =30% Common stock =$100,000 Retained eamings =$20,000 Long-term liabilities =$360,000 2. Evaluate a project costing $100,000 and returning $50,000 in year 1,$40,000 in year 2 and $30,000 in year 3 using the profitability index method and a 13% required rate of return. (10) 3. Evaluate the project in the preceding problem using the payback period method and a 2.5-year cutoff period

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