Intro A new firm requires an initial investment of $1.000 and will generate a before-tax...
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Intro A new firm requires an initial investment of $1.000 and will generate a before-tax gross return of $2,300 after one year and then shut down. The firm is 36% financed with debt at an expected return of 3%. The appropriate unlevered after-tax cost of capital is 14% and the marginal income tax rate is 21%. Attempt 1/10 for 10 pts. Part 1 What is the weighted average cost of capital? 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the present value of the cash flows using the weighted average cost of capital? 0+ decimals Submit
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