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The Global Connections Corporation has a current market capitalization of $ 1 billion. It considers an investment with initial outlay of $ 1 0 0
The Global Connections Corporation has a current market capitalization of $ billion. It considers an investment with initial outlay of $ million. The investment increases the net cash flows by million per year for the indefinite future. GCC faces a tax rate of has debt in its capital structure which it seeks to maintain in the new project. The firms debt is risk free, at The relevant interest rate for investment in this line of business is
Calculate the value of the project as if it was all equity financed Use the WACC method to evaluate the project.
Use the Adjusted PV method to evaluate the project.
Use the Flow to Equity method to evaluate the project
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