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PLEASE SHOW WORK A project has the same risk as the firm's overall operations and must be financed externally. Equity costs 15 percent and debt
PLEASE SHOW WORK
A project has the same risk as the firm's overall operations and must be financed externally. Equity costs 15 percent and debt costs 4 percent after-tax. The firm's debt/equity ratio is .8. The tax rate is 34 percent. What is the minimal internal rate of return the project must earn to be accepted? 51 percent 10.1 percent 6 percent 2 percent 5 percentStep by Step Solution
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