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The Norris Company is looking to fund new project with capital from both bondholders and shareholders. The project will cost $5,000 with 60% being financed
The Norris Company is looking to fund new project with capital from both bondholders and shareholders. The project will cost $5,000 with 60% being financed with bonds requiring 5% interest and the remainder with shareholder investment. The company predicts there is a 65% chance the project will be a success worth $9,000. The expected cash flow for the Norris Company is $6,275.
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