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Intro A new firm requires an initial investment of $1,000 and will generate a before-tax gross return of $2,200 after one year and then shut
Intro A new firm requires an initial investment of $1,000 and will generate a before-tax gross return of $2,200 after one year and then shut down. The firm is 24% financed with debt at an expected return of 6%. The appropriate unlevered after-tax cost of capital is 14% and the marginal income tax rate is 21%. | Attempt 1/10 for 10 pts. Part 1 What is the weighted average cost of capital? 3+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What is the present value of the cash flows using the weighted average cost of capital? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 3 How much debt does the company have (in $)? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 4 What is the APV? 0+ decimals Submit Intro A new firm requires an initial investment of $1,000 and will generate a before-tax gross return of $2,200 after one year and then shut down. The firm is 24% financed with debt at an expected return of 6%. The appropriate unlevered after-tax cost of capital is 14% and the marginal income tax rate is 21%. | Attempt 1/10 for 10 pts. Part 1 What is the weighted average cost of capital? 3+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What is the present value of the cash flows using the weighted average cost of capital? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 3 How much debt does the company have (in $)? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 4 What is the APV? 0+ decimals Submit
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