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NEED CORRECT ANSWERS David Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding
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David Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding bonds is 12%, and the company's tax rate is 25%. Ortiz's CFO has calculated the company's WACC as 13.2%. What is the company's cost of equity capital? Round your answer to the nearest whole number. % A project has an initial cost of $60,000, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 8%. What is the project's IRR? Round your answer to two decimal places Step by Step Solution
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