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umiudl percentage rates (APRs) ey. Unless stated Suppose Taggart Transcontinental has an equity cost of capital of 10%, market capitalization of $10 billion, and an

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umiudl percentage rates (APRs) ey. Unless stated Suppose Taggart Transcontinental has an equity cost of capital of 10%, market capitalization of $10 billion, and an enterprise value of $15 billion. Suppose Taggart Transcontinental's debt cost of capital is 6% and its marginal tax rate is 35%. a. What is Taggart Transcontinental's WACC? (10 points b. Assuming If Taggart Transcontinental maintains a constant debt-equity ratio, what is the value and NPV of a project with average risk and the following expected free cash flows: (10 points Year FCF -250 150 300 200 c. What is Taggart Transcontinental's unlevered cost of equity?(10 points d. What is the unlevered value of the project? (10 points) e. Assuming that Taggart Transcontinental maintains a constant debt to equity ratio, calculate the Adjust Present Value (APV) for the project. [10 points f. Assuming that Taggart Transcontinental maintains a constant debt to equity ratio, what are the Free Flows to Equity FCFE associated with this project? (10 points e What is the NPV of the project computed using the FCFE 10 points)

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