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You have one way out our 3,03 Equity shares outstanding Stock price per share 20 million $ 38 Yield to maturity on debt 9.5% Book

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You have one way out our 3,03 Equity shares outstanding Stock price per share 20 million $ 38 Yield to maturity on debt 9.5% Book value of interest-bearing debt Coupon interest rate on debt $ 345million. 4.3% Market value of debt $ 240 million Book value of equity Cost of equity capital Tax rate $ 400 million 11.6% Burgundy is contemplating what for the company is an average-risk investment costing $36 million and promising an annual ATCF of $48 million in perpetuity a. What is the internal rate of return on the investment? (Round your answer to 2 decimal places.) Internal rate of return b. What is Burgundy's weighted-average cost of capital? (Round your answer to 2 decimal places.) Weighted average cost 36

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