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write down the steps ans results of each calculation - ABC is considering a project that has the following cash flow and WACC data. (a)
write down the steps ans results of each calculation
- ABC is considering a project that has the following cash flow and WACC data. (a) (b) (c) What is the project's NPV? What is the project's IRR What is the project's MIRR? Should the project be accepted? Why? (d) WACC: The result of (1) above Year 0 1 2 3 4 5 Cash flows -$1,100 $420 $380 $360 $340 $320 ABC Inc.'s capital structure is 40% debt, 25% preferred, and 35% common equity, and its tax rate is 358. For financing, (a) ABC sold a non- callable bond several years ago that now has 15 years to maturity with 88 annual coupon, paid semiannually, at a price of $1,065, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00% of the price. (c) ABC also has beta - 1.2, risk free rate of return rrr - 6.00%; market risk premium RP 7.00% Step by Step Solution
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