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Company has a target capital structure which is 4 0 percent debt and 6 0 percent equity. The equity will be financed with retained earnings.
Company has a target capital structure which is percent debt and
percent equity. The equity will be financed with retained earnings. The companys bonds have a
yield to maturity of percent. The companys stock has a beta The riskfree rate is percent,
the market risk premium is percent, and the tax rate is percent. The company is considering a
project with the following cash flows:
YEAR CASH FLOW
What is the discounted payback of the project, b what is NPV of the project, c what is the
MIRR of the project.
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