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ed out of 0 The Anc Corporation has a capital structure of 40% debt and 60% equity. The company's tax rate is 10% and considers

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ed out of 0 The Anc Corporation has a capital structure of 40% debt and 60% equity. The company's tax rate is 10% and considers taking up a 90 million project, which generates perpetuity cash flow Assume that only enses are 75% of revenue with no depreciation expense. The project is financed with 40debt and os equity with a discount rate (WACC) of 10% The cost of equity is 14% and before tax cost of debt is 8% if the annual before interest expenses) pretax cash flow of the project is $18 million answer the follow questions (assuming that UM Finances the project with os debt and 60% culty Note: show all detail calculation steps and use two decimal points for percentage for numeric) in computations and answers] (3) What is the NPV of the project? OX) What is the rate of return for debtors? Do debtors get back their required rate of retur? les (0) What is the rate of return for equity holders shareholders? Do acuity holders get back more or less than their required rate of return? How much is the interest tax shield that equity holders en lo What are the project NPV for dettholders and equity Holders on What should be the breakeven after tax cash flow for equity holders at 14 ed out of 0 The Anc Corporation has a capital structure of 40% debt and 60% equity. The company's tax rate is 10% and considers taking up a 90 million project, which generates perpetuity cash flow Assume that only enses are 75% of revenue with no depreciation expense. The project is financed with 40debt and os equity with a discount rate (WACC) of 10% The cost of equity is 14% and before tax cost of debt is 8% if the annual before interest expenses) pretax cash flow of the project is $18 million answer the follow questions (assuming that UM Finances the project with os debt and 60% culty Note: show all detail calculation steps and use two decimal points for percentage for numeric) in computations and answers] (3) What is the NPV of the project? OX) What is the rate of return for debtors? Do debtors get back their required rate of retur? les (0) What is the rate of return for equity holders shareholders? Do acuity holders get back more or less than their required rate of return? How much is the interest tax shield that equity holders en lo What are the project NPV for dettholders and equity Holders on What should be the breakeven after tax cash flow for equity holders at 14

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