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Corpfin Mod 17: Homework
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NEAS
NEAS
posted 20 Years Ago
#2763
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[Below are student comments on a similar homework assignment used in past years.]
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NEAS
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Jim
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Jim
posted 5 Years Ago
#16561
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J
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For part C I did
WACC = (r
D
*D*(1-T
C
)+ r
E
*E) / (D + E) =
(0.08*4,000,000*(1-0.35) + 0.12*6,000,000) / (4,000,000 + 6,000,000) = 0.0928
which is higher than the borrowing rate of 8% so the tax sheild will go up
Am I correct?
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Corpfin Mod 17: Homework
NEAS
-
20 Years Ago
I get the following answer, please correct me if I am wrong... Part...
bobochacha
-
14 Years Ago
The weighted average cost of capital for the project is 10.86% which...
bobochacha
-
14 Years Ago
Can you please explain Part C in more detail? The question seems to...
chrisL
-
14 Years Ago
I tried to solve part C based on the practice problem 17.1G (where...
Ozza2011
-
14 Years Ago
The 3 step WACC process is referenced in the next module. Page 543 for...
rderr27
-
13 Years Ago
+ x [quote] [b] rderr27 - 1/2/2012 10:54:52 AM [/b] The...
NEAS
-
7 Years Ago
For part C I did WACC = (r D *D*(1-T C )+ r E *E) / (D + E) = (0.08*4,000,000*(1-0.35) + 0.12*6,000,000) / (4,000,000 + 6,000,000) = 0.0928 which is higher than the borrowing rate of 8% so.....
Jim
-
5 Years Ago
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