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answer all please don't answer it anymore i don't need the answers again The current total market value of RRT Co. is $10 million. The
answer all please
don't answer it anymore i don't need the answers again
The current total market value of RRT Co. is $10 million. The firm plans to raise and invest $5 million in a new project. Compared to the risks of the firm's existing assets, the project is about average-risk. The firm's present market value capital structure, shown below, is considered optimal. There is no short-term debt and preferred stock. The firm intends to finance the new project in a way that maintains the capital structure. Debt: $4 million Equity: $6 million The firm will issue new bonds and common stocks to finance the project. The bonds will have a coupon rate of 12% and are expected to be issued at par. The current stock price per share is $25. Assume the stock is priced in equilibrium. The firm just paid a dividend of $2 per share for the quarter. The dividend is expected to grow at 8% per year. The floatation cost for new stock issuance is 5%. The corporate tax rate is 40%. What is the WACC for the project? Select one: O a. 3281 ob. 2951 Oc.2345 O d. 2612 The possible EBITs for the coming year are $300, $350, and $400 with the probabilities 20%, 40% and 40% respective The interest payment is $90 and the corporate tax rate is 10%. There are 50 cominon shares outstanding. What is the standard deviation of EPS? Time Left 0 Select one: O a. 5112 Ob..6322 Oc. 3412 Od .4490 What is the MIRR of the following project? ear 0 1 2 3 $400 $500 $400 ash flows -$1,000 FACCcomp=12% lect one: a. 12.02% b. 13.49% C. 11.00% 14.58% What is the discounted payback of the following project? WACC for 10.00% the project: Year 0 2 Cash flows -$900 $500 $500 3 $500 Select one: O a. 1.76 years O b. 3.02 years O c. 2.58 years O d. 2.09 years Step by Step Solution
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