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please show steps with formulas, thanks A company has 2,300,000 shares outstanding selling for $30 each. The most recent was $3 per share and the
please show steps with formulas, thanks
A company has 2,300,000 shares outstanding selling for $30 each. The most recent was $3 per share and the dividend growth rate is 1%. The company has 35,000 bonds outstanding with $750 par value and the yield to maturity of 1.5%. The bond is now selling for 98% of par. The companies tax rate is 35%. 1. What is the companies WACC? The company is considering a project that will result in after-tax cash savings of $1 million at the end of the first year, It is expected that this savings will grow at the rate of 0.9% per year indefinitely. The project is considered to be in the same risk class as the overall firm. 2. Assuming the initial cost of the project is $12 million, should the project be accepted Step by Step Solution
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