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I just need help with the NPV and IRR Please PLYING WACC A firm has a target capital structure of 55% debt and 45% equity.
I just need help with the NPV and IRR Please
PLYING WACC A firm has a target capital structure of 55% debt and 45% equity. Currently, investors in the firm's debt want a 7.15% yield to maturity, while investors in the firm's equity have a required return of 8.90%. The marginal tax rate for the firm is 26%. The firm has a project with the following cash flows: Year 0 1 2 $ $ $ $ $ $ Cash Flow (35,000.00) 8,000.00 12,000.00 15,000.00 12,000.00 12,000.00 3 4 Solve for WACC, NPV and IRR 45% The weight in equity The weight in debt Cost of equity Cost of debt Tax rate 55.00% 8.90% 5.29% 26.00% 6.92% WACC NPV IRRStep by Step Solution
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