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calculate cost of capital as the CFO . the company currently has 5000 bond on issue . the bond will mature in 20 years .
calculate cost of capital as the CFO . the company currently has 5000 bond on issue . the bond will mature in 20 years . each bond is traded at $1000 and pays a semi annual coupon at rate of 8% per annum with effective pre tax cost of debt of 6% . the company has 1000 ordinary shares at price $30 per share . a dividend of $ 3 just paid and the dividend is expected to grow at rate 4% into indefinate future . the firm tax is 30% . the compsny is considering to expand its operation that require initial investment of $1.5 million . it is estimated that the projects free cash flow will be $0.15 million per year in perpetuity. what is company's after tax weighted average cost of capital and NPV ?
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