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question 1: One research project will cost $500,000 today and is expected to yield benefits of $50,000 at the end of each of the next
question 1: One research project will cost $500,000 today and is expected to yield benefits of $50,000 at the end of each of the next 30 years. A second project will cost $400,000 in yield a single cash flow of $800,000 in six years.
What is the difference in the IRRs these research project?
question 2:
heres some more info on a company:
number of issuances.
Debt 4000
preferred stock 10,000
common stock 200,000.
Bonds YTM: 6%.
preferred stock price: $60.
Preferred stock dividend: $9.
Bond price: 104% of par.
Beta: 1.2.
Common stock growth rate: 4%.
Market risk premium: 12%.
Risk free rate: 6%.
Bond par value: $1000.
Common stock price: $45.
corporate tax rate: 35%.
What is this companys WACC?
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