C https/www.csepub.com/exercise/users/answers/12026332/edit CSePub Home Book Store Instructors Independent Authors Ramblin Wreck is a firm specializing...
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C https/www.csepub.com/exercise/users/answers/12026332/edit CSePub Home Book Store Instructors Independent Authors Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and is considering the following project The project will last 5.00 years with an annual cash fliow of $40.00 million. The project will require an initial investment of $140.00 million The firm must determine the cost of capital to evaluate the project. (The project is within the firm's normal activities) Ramblin Wreck, Inc. Financial Data STOCK DATA BOND DATA: Current Price Per Share $27.00 Current Price Per Bond $925.00 20,000.00 8.00% Face Value Per Bond$1,000 10 years 2.00 million of Shares Book Value #ot bonds Annual Coupon Rate s50 million Maturity The risk free rate in the economy is currently 2.00%, while investors have a market risk premium of 6.00%. Ramblin Wreck, Ramblin Wreck, Inc. has a beta of 1.45. The tax rate is 38.00%. What is the WACC for the project? Dell Update 3updates are ready to instal Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 dec. Instal Enter Answer Here O Type here to search DOLL
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