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I am interested in how to do part b Exercise #1: Regal Industries has the following capital structure. Its corporate tax rate is 35%. Book
I am interested in how to do part b
Exercise #1: Regal Industries has the following capital structure. Its corporate tax rate is 35%. Book Value $18 million $27 million Market Value $20 million 50 million Cost 6% 14% Weight Security Debt Common stock A. Compute WACC B. Regal is evaluating a project costing $48,000 which will generate $10,000 for 6 years. It will require an increase of $2,000 in NWC at the outset, but no recapture. Should Regal accept the project? NPV -...Accept
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