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Question 25 1 pts Consider a project with expected annual revenues of $130 and costs of $60 in perpetuity. The project's revenues have a beta
Question 25 1 pts Consider a project with expected annual revenues of $130 and costs of $60 in perpetuity. The project's revenues have a beta of 1.2, while the project's costs are completely fixed at $60 per year (regardless of market conditions or the state of the economy). The risk-free rate is 4%, and the expected return of the market is 10%. What is the NPV of the project (rounded to the nearest $5)? O $625 O $215 O $760 O $1,160 O -$340 D Question 26 1 pts XYZ Corporation currently has 10 million shares outstanding with a market price of $20 per share and no debt. XYZ has had consistently stable earnings and pays a 25% tax rate. If management borrows $120 million on a permanent basis and use the funds to repurchase shares, what will XYZ's new share price be after the repurchase (rounded to the nearest dollar per share)? O $24 $23 O $21 O $22 O $20 Question 25 1 pts Consider a project with expected annual revenues of $130 and costs of $60 in perpetuity. The project's revenues have a beta of 1.2, while the project's costs are completely fixed at $60 per year (regardless of market conditions or the state of the economy). The risk-free rate is 4%, and the expected return of the market is 10%. What is the NPV of the project (rounded to the nearest $5)? O $625 O $215 O $760 O $1,160 O -$340 D Question 26 1 pts XYZ Corporation currently has 10 million shares outstanding with a market price of $20 per share and no debt. XYZ has had consistently stable earnings and pays a 25% tax rate. If management borrows $120 million on a permanent basis and use the funds to repurchase shares, what will XYZ's new share price be after the repurchase (rounded to the nearest dollar per share)? O $24 $23 O $21 O $22 O $20
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