G Mail .il 8:01 AM a inst-fs-iad-prod.inscloudgate.net 4 of 6 25) Donner, Inc wil finance a proposed investment by issuing new securities while maintaining its optimal capital structure of 60% debt and 40% e uity The firm can issue bonds at a peice of t96000 and fiotation costs in tstal s115 per bond. The10-year bonds will have an annual coupon rate of 8% and a face value of 1,000. The company can issue new equity at a cost of 16% and its marginal tax rate is 3 %. What is te appropriate cost of capital to use in analyzing this project? D) 11.81% 26) Project LMK requires an initial ouay of 400.000 and has a profitability index of 15 D) 180.000 A) 997% 3.63% C) 8.77% 25) What is project LMK's net present value? A) 1600 .000 B)*120.000 C) 120000 27) It IRR of one investment is the same as the investor's required rate of return (cost o capital What is the correspond ing NPV of this investment? A) Cannot be determined C) >0 B)