Question
What is the amount of borrowings in a total power project investment of PhP 200 billion if the debt-equity ratio is 1:3? *what is the
What is the amount of borrowings in a total power project investment of PhP 200 billion if the debt-equity ratio is 1:3? *what is the corresponding amount of equity? *what is the Weight Averge Cost of Capital if the project owners are expecting a return of 25% and the borrowings will be provided by a bank at an interest rate of 7.5%? *What discount rate should you use if you are computing the Net Present Value of the power project? *What discount rate should you use if you are computing the return on investment on the power project by the equity providers?
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