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A firm's stockholders expect an 18% rate of return, and there is $26M in common stock and retained earnings. The firm has $9M in loans

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A firm's stockholders expect an 18% rate of return, and there is $26M in common stock and retained earnings. The firm has $9M in loans at an average rate of 8%. The firm has raised $18M by selling bonds at an average rate of 4%. If the firm has a tax rate of 34%. What is the minimum attract rate of return (MARR) for the firm? 9.5% 10.5% 11.5% 12.5% Consider the following three mutually exclusive alternatives: The calculated IRR_B-A = 0%, and IRR_C-A = 11%, For what range of values of MARR is Alternative A the preferred alternative? 0-11% 10-19% 11-19% 17-19%

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