Question
suppose blank company has one project, and it is expected to generate cash flow of $35,000 per year. The company has an unlevered cost of
suppose blank company has one project, and it is expected to generate cash flow of $35,000 per year. The company has an unlevered cost of equity of 8%. Now suppose Blank Company wants to borrow $10,000 at 5% to make the investment, what is the firm's WACC after restructuring? Assume the perfect M&M's world holds.
A 8% B 9.33% C 11.6% D None of the above
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
