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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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