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Question 3 5 points Save Answer You are a financial manager at ABC Corp. and are trying to assess the following project. The project will
Question 3 5 points Save Answer You are a financial manager at ABC Corp. and are trying to assess the following project. The project will require a $250 million initial investment and will generate free cash flows in years 1-4 as shown in the table below. ABC Corp maintains a constant debt-to-enterprise value ratio of 45% and its current WACC is 11.45%. Assuming that ABC Corp. takes the project, how much additional debt must the firm issue in order to maintain a constant debt-to-enterprise value ratio of 45%? Select One. Free Cash Flows for New Project (in $ million) Year 1 2 FCF (in $ millions) (250.00) 100.00 150.00 100.00 0 3 4 50.00 1. $181.13 million O II. $29.31 million O III. $112.50 million IV. $141.81 million OV. $65.13 million
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