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11 A firm is analyzing two different capital structures for financing a new project that will cost RM100,000. The two structures are described below: Plan
11 A firm is analyzing two different capital structures for financing a new project that will cost RM100,000. The two structures are described below: Plan A: finance with 50% debt Debt (bonds) RM50,000 Common equity RM50,000 Plan B: finance with 90% debt Debt (bonds) RM90,000 Common equity RM10,000 New common stock can be sold for RM10 per share. The bonds can be issued with a 8% coupon rate. The firm
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