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23. What is the after-tax cost of Common Stock for Boo Inc, given the following (USE CAPM): GIVEN: Market Return, Rm is 10%, beta is

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23. What is the after-tax cost of Common Stock for Boo Inc, given the following (USE CAPM): GIVEN: Market Return, Rm is 10%, beta is 2 and the Risk Free (Treasury Bond Yield). Rf is 4% a 6.18% b. 12% d. NONE The optimal capital structure for Boo Inc. is 40% debt and 60%. Given the information above calculate the Weighted Cost of Capital (WACC). Complete the Table. COMPONET ATER TAX COST WEIGHT CONTRIBUTION Long-term Debt Common Equity ($1 par) TOTAL 24. Boo's WACC is a. 12.07 b. 14.22 c. 16.22 d. None 25. If Boo has a capital budgeting project with an estimated IRR of 17%, Boo should accept the project and Implement it. a. True B. False

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