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Business, 23.03.2021 04:10 Amyra2003

Beta of its common stock = 1.4 Treasury bill rate = 3% Market risk premium = 7.5% Yield to maturity on its bond = 5% Book value of its common stock = $440 million Market value of its common stock = $880 million Book Value of its bond = $660 million Market value of its bond = $880 million Corporate tax rate = 21% What is the company’s WACC? If the company considers a normal project whose risk is about the same as the company’s risk with an internal rate of return of 8%, should it accept the project? Why or why not?

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Beta of its common stock = 1.4 Treasury bill rate = 3% Market risk premium = 7.5% Yield to maturity...

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