Old MathJax webview

Old MathJax webview

tive question, hence you have to write your answer in the Text-Field given below. 0 million shares of common stock outstanding. The common stock currently sells for $50 per share and has a beta of 1.50 XYZ Corp. has utstanding and sell for 105% of par value. The ytm (yield to maturity) of the bond is 5% p.a. The market risk premium is 6%, T-bills are nd corporate tax rate is 30%. All p.a. rates are EAR. s market value capital structure (i.e. Market value of debt/Market value of equity)? What is the firm's cost of capital? valuating a new investment project that has an investment of $10 million at year 0 and is expected to have a cash flow of $3 million from cowing at the rate of 6% p.a. forever, what is the NPV of the project? [10] a