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Should a company invest in a new opportunity based on the information below? weights of 40% debt and 60% common equity (not preferred equity), 35%

Should a company invest in a new opportunity based on the information below?

  • weights of 40% debt and 60% common equity (not preferred equity),
  • 35% tax rate,
  • 8% cost of debt,
  • 1.5 beta of the company,
  • 2% risk-free rate, and
  • 11% return on the market.
  • 11.38% WACC

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