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Optimal Captial Budget Here are some data on the Schwab Company: 1) the target capital structure is 40% debt and 60% equity; 2) projected retained
Optimal Captial Budget
Here are some data on the Schwab Company:
1) the target capital structure is 40% debt and 60% equity;
2) projected retained earnings = 6 million;
3) new bonds can be issued to yield10%;
4) Applicable marginal tax rate = 30%
5) Cost of retained earning = 15.5%
6) Cost of new common stock= 16.5 %
7) the following four capital projects have been identified. They are all of average risk, independent, and non-divisible.
I need help creating a graph. Determine the optimal capital budget.
Can I send you the document?
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