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Question 4 3 pts Detroit acquired Dearborn and financed the 100% of the acquisition cost by issuing bonds. After-tax YTM of Bond = 8.50% WACC

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Question 4 3 pts Detroit acquired Dearborn and financed the 100% of the acquisition cost by issuing bonds. After-tax YTM of Bond = 8.50% WACC (current capital structure) = 15.00% WACC (target capital structure) = 12.50% Which is the correct discount rate to be used for valuing this project? 8.50% O 12.50% O 15.00% Question 5 3 pts Troy is acquiring Coffee House chain for its Restaurant division. Which is the most appropriate WACC for valuing Coffee House? WACC of the Troy Corporation WACC of the "Restaurant" division of Troy WACC used in the most recent acquisition of Troy corporation WACC based on Reataurant Division operating the Coffee House

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