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The AAA Corporation has decided to build a new facility. The cost of the facility is estimated to be 70,000. AAA wishes to finance this

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The AAA Corporation has decided to build a new facility. The cost of the facility is estimated to be 70,000. AAA wishes to finance this project using its traditional debt-to-equity ratio of 1.5. The cost of equity is 6 percent and the cost of debt is 1 percent. What is the total cost of raising funds (i.e. the cost of the facility)? O 72,100 72,800 O 74,200 70,000 QUESTION 9 A project has an expected risky cash flow of $300, in year t= 3. The risk-free rate is 5percent, the market risk premium is 8percent and the project's beta is 1.25. Calculate the certainty equivalent cash flow for year t=3. O $300 $400.00 $197.25 $228.35 O $102.11

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