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please show work Suppose company is considering an investmeny in a facility of $75,000,000. Suppose the invested is exepcted to generate a return of $6,000,000
please show work
Suppose company is considering an investmeny in a facility of $75,000,000. Suppose the invested is exepcted to generate a return of $6,000,000 per year, indefinitely (forever) Suppose in order to finance this investment they plan on using a combimation of cash and stock. Our bankers have advised the company to issue 55% bonds at a rate of 3%, and 45% stock at a rate of 15% Is the project worth considering? Why or why not Step by Step Solution
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