Question
Continued......The firm has 3 investment choices below. Each require $1 million in new investment. Their net income is $3,000,000 with a 40% dividend payout ratio.
Continued......The firm has 3 investment choices below. Each require $1 million in new investment. Their net income is $3,000,000 with a 40% dividend payout ratio. How much external financing (borrow) is needed?
| Project | Cost capital r | IRR |
| J | 12% | 11.50% |
| K | 10.50% | 11% |
| L | 13.25% | 13.50% |
| $200,000 | ||
| $3,000,000 | ||
| $1,800,000 | ||
| $2,000,000 |
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How To Analyse Bank Financial Statements
Authors: Thomas Padberg
1st Edition
0857195182, 978-0857195180
