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Alegeti o optiune means Choose one option. Thanks. The investment cost for a project is 10,800 c.u. and it is paid at once, being covered
"Alegeti o optiune" means Choose one option. Thanks.
The investment cost for a project is 10,800 c.u. and it is paid at once, being covered by equity, in the amount of 3,000 c.u., for which the shareholders' required return is 15%. The rest of necessary capital is financed by a bank loan for which the annual interest rate charged by the lender bank is 10%. If the companies Income tax rate is 16%, which is the discount rate to be used for deriving the net present value of the investment project (respectively the weighted average cost of capital? Alegeti o opiune: a. 10.23% b. 11.39% C. 13.13% d. 14.01% e. 12.36%Step by Step Solution
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