Homemade Flying Machines has a capital structure of \27 debt, \10 preferred stock and \63...
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Homemade Flying Machines has a capital structure of \27 debt, \10 preferred stock and \63 common stock. The pre-tax cost of debt is \5.9, the cost of preferred stock is \8 and the cost of equity is \13. The firm's marginal tax rate is \21. a. What is the company's weighted average cost of capital? Nickelon's cash flow from assets during the current year is \\( \\$ 140 \\) million, which is expected to grow at a constant rate of \3 in the future. The weighted average cost of capital is \11. a. What is the firm's total corporate value (in \\$ million)? A project has a beta of 0.7 . The risk-free rate is \2.1 and the expected market risk premium is \2. a. What is the project's cost of capital
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