A firm is currently faced with an investment opportunity of total cost of AED 1.000.000....

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A firm is currently faced with an investment opportunity of total cost of AED 1.000.000. Thenew p oo d befinanced by for 10 years to combination of Germany equity. If funded by debt the before costs and expected retumis and the precisanded by equity the cost is 10% and the expected retum is 12%. These are 40% and the materiais which one of the following advices is most com ? Accept the project, because using the combination of 30% debit and 70% theo of %12% 185, which is greater the - Reject the project, because using the combination of 30% debt and 70 out the weighted average cost of capital of 10.07.ich is ge Issue new equity and reject the opportunity by issuing debt. because the 12% expected roluminouity issue is perante o equity cost of n erat o ewn m 10% Then we pro tyg Issue debt and accept the project, because it can sam expected return on the investment of funds costing only the should the opportunity by g ew e c he 14 rancang a n Accept the project because using the combination of 30% debt and 70% uity the weighted average cost of capital is around 11 which is greater than the rest of the 10% Sun 05 Close Wind A firm is currently faced with an investment opportunity of total cost of AED 1.000.000. Thenew p oo d befinanced by for 10 years to combination of Germany equity. If funded by debt the before costs and expected retumis and the precisanded by equity the cost is 10% and the expected retum is 12%. These are 40% and the materiais which one of the following advices is most com ? Accept the project, because using the combination of 30% debit and 70% theo of %12% 185, which is greater the - Reject the project, because using the combination of 30% debt and 70 out the weighted average cost of capital of 10.07.ich is ge Issue new equity and reject the opportunity by issuing debt. because the 12% expected roluminouity issue is perante o equity cost of n erat o ewn m 10% Then we pro tyg Issue debt and accept the project, because it can sam expected return on the investment of funds costing only the should the opportunity by g ew e c he 14 rancang a n Accept the project because using the combination of 30% debt and 70% uity the weighted average cost of capital is around 11 which is greater than the rest of the 10% Sun 05 Close Wind

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