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Part II (50%) The company has the following capital structure: Account $ Costs before tax Long-term Debt 2,000,000 10% Preferred Stock 500,000 14% Common Stock
Part II (50%)
The company has the following capital structure:
Account | $ | Costs before tax |
Long-term Debt | 2,000,000 | 10% |
Preferred Stock | 500,000 | 14% |
Common Stock | 2,500,000 | 18% |
The company has the following capital structure:2. Using the same cash flows in exhibit I find the NPV, PI, IRR and MIRR (Use the WACC you have computed above). Which project(s) would you recommend and why (show your calculations)?
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