Question
Explain clearly, don't copy from internet Calculate the cost of capital for a project with the following characteristics. The total amount required for the project
Explain clearly, don't copy from internet
Calculate the cost of capital for a project with the following characteristics.
The total amount required for the project is 22.6 million dollars.
A loan for 7.9 million will be requested, at an interest rate of 11.13 percent with 3 payments per year,
interest compounded at every payment A bond issue for 5.3 million will be open, paying a bond rate of 12 percent with 4 payments per year.
The remaining amount will be financed by issuing common stock.
The dividends payed are 9.33 and the average price of the stock is 136.22
The applicable tax rate is 37 percent
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