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IMB Inc., whose tax rate is 2 0 % , has 8 . 2 MM preferred shares outstanding, priced at $ 2 0 ( dividend

IMB Inc., whose tax rate is 20%, has 8.2 MM preferred shares outstanding, priced at $20(dividend =$1.80), and 90 MM common shares outstanding, priced at $17. Its debt structure is long-term bonds (15-year bonds, coupon rate =6%, issue/quoted price =$830), totaling $330MM. IMB Inc.'s stock moves 1.25% for every 1% change in its underlying market, which has an R(m)=11%. If the risk-free rate =3%, should IMB Inc. accept a project which has a return =13.15%(justify your answer)?
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