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An all-equity financed company has a cost of capital of 10 percent. It owns one asset: a mine capable of generating $95 million in free

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An all-equity financed company has a cost of capital of 10 percent. It owns one asset: a mine capable of generating $95 million in free cash flow every year for five years, at which time it will be abandoned. A buyout firm proposes to purchase the company for $300 million financed with $250 million in compound interest debt to be repaid in five, equal, end-of-year payments and carrying an interest rate of 8.0 percent. . Calculate the annual debt-service payments required on the debt. ). Ignoring taxes, estimate the rate of return to the buyout firm on the acquisition after debt service. Note: Round your answer to 1 decimal place. What is the weighted-average cost of capital for SKYE Corporation glven the following information

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