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Based on market values, Gubler's Gym has an equity multiplier of 1 . 5 2 times. Shareholders require a return of 1 1 . 1
Based on market values, Gubler's Gym has an equity multiplier of times. Shareholders require a return of percent on the company's stock and a pretax return of percent on the company's debt. The company is evaluating a new project that has the same risk as the company itself. The project will generate annual aftertax cash flows of $ per year for years. The tax rate is percent. What is the most the company would be willing to spend today on the project?Multiple Choice$$$$$
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