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solve both parts please! Intro Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by
solve both parts please!
Intro Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a year forever. The stock currently sells for $73 a share. The before-tax cost of debt is 9% and the tax rate is 34%. The target capital structure consists of 60% debt and 40% equity. IB Attempt 2/10 for 8.5 pts. Part 1 What is the company's weighted average cost of capital? 4+ decimals Submit Intro A project requires an initial investment of $60 million and will then generate the same cash flow every year for 10 years. The project has an internal rate of return of 18% and a cost of capital of 10%. Attempt 1/10 for 9.5 pts. Part 1 What is the project's NPV (in $ million)? 1+ decimals SubmitStep by Step Solution
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