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5. (a)When evaluating investment projects the finance manager is faced with a choice between using the firm's cost of capital and the project's own cost
5. (a)When evaluating investment projects the finance manager is faced with a choice between using the firm's cost of capital and the project's own cost of capital to discount the projects expected cash flows. Give two circumstances under which the finance manager should be in different between the two costs of capital. (b)Masasi Decorator Limited (MDL) has a target debt equity ratio of 0.50. It's cost equity cap ital is 14% and its cost of debt capital is 10%.If the corporate tax rate is 30%, what is MDL'S Weighted Average Cost Capital (WACC)
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