A project is financed with 6 million equity and 5 million debt. The project has 1 million
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Question:
A project is financed with 6 million equity and 5 million debt. The project has 1 million in cash. Beta is 1 for equity and 0.1 for debt. The risk-free interest rate is 0.04 and the market premium is 0.06.
Calculate the unlevered cost of capital for the project.
Related Book For
Stats Data And Models
ISBN: 662
4th Edition
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
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