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13. Assume the Co. X has 10 million common shares outstanding, 1 million shares of preferred stock outstanding, and $200 million of long-term debt. Assume,
13. Assume the Co. X has 10 million common shares outstanding, 1 million shares of preferred stock outstanding, and $200 million of long-term debt. Assume, cost of debt is 3%, cost of preferred stock is 6%, and cost of common stock is 9%. Also assume that corporate tax is 20%. Calculate the weights of debt, common equity and preferred equity for use in computing Co. X's WACC 14. Suppose you are planning to invest in a capital project and its expected cash flows (both outflow and inflow) are as follows: Time Cash Flovw Assume that your WACC is 10%. Calculate payback period, discounted payback period, NPV, Profitability Index (PI), and the MIRR Yr_0 Yri Yr 3 Yr 4 $10 $2 1 $5$8 13. Assume the Co. X has 10 million common shares outstanding, 1 million shares of preferred stock outstanding, and $200 million of long-term debt. Assume, cost of debt is 3%, cost of preferred stock is 6%, and cost of common stock is 9%. Also assume that corporate tax is 20%. Calculate the weights of debt, common equity and preferred equity for use in computing Co. X's WACC 14. Suppose you are planning to invest in a capital project and its expected cash flows (both outflow and inflow) are as follows: Time Cash Flovw Assume that your WACC is 10%. Calculate payback period, discounted payback period, NPV, Profitability Index (PI), and the MIRR Yr_0 Yri Yr 3 Yr 4 $10 $2 1 $5$8
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