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Please answer all questions CORRECTLY. P.S. - select dropdown choices: The firm should proceed with the recapitalization, The firm should not proceed with the recapitalization
Please answer all questions CORRECTLY.
P.S. - "select" dropdown choices: "The firm should proceed with the recapitalization", "The firm should not proceed with the recapitalization"
a. What is MME's current WACC? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the current beta on MME's common stock? Do not round intermediate calculations. Round your answer to four decimal places. decimal places. would rise to 7.2%. The proposed change will have no effect on the company's tax rate. % % f. Based on your answer to Part e, would you advise MME to adopt the proposed change in capital structure? Dividends = Net income [( Target equity ratio) (Total capital budget) ] dependable dividends. Consequently, firms should use this model to help set their long-run target payout ratios, but not as a guide to the payout in any onear. for these projects are presented here: ProjectH(highrisk):ProjectM(mediumrisk):ProjectL(lowrisk):Costofcapital=15%Costofcapital=11%Costofcapital=9%IRR=17%IRR=9%IRR=10% %Step by Step Solution
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