Question
A firm is considering an average-risk project with an IRR of 6%. The firm's cost of debt (KD) is 5%, its cost of equity (KE)
A firm is considering an average-risk project with an IRR of 6%. The firm's cost of debt (KD) is 5%, its cost of equity (KE) is 12%, and its tax rate (t) is 20%. The target debt ratio (D/(D+E)) for the project, in market values, is 0.5. The firm should:
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Principles Of Financial Modelling Model Design And Best Practices Using Excel And VBA
Authors: Michael Rees
1st Edition
111890401X, 978-1118904015
