The information on projected cash flow available to you are as follows:- AA: Year 0:-RM90mil...
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Finance
The information on projected cash flow available to you are as follows:-
AA: Year 0:-RM90mil Year1:RM70mil Year 2: RM100mil
BB: Year 0:-RM100mil Year1:RM90mil Year 2: RM120mil
CC: Year 0:-RM80mil Year1:RM100mil Year 2: RM110mil
the company ABC capital structure is 60% Equity and 40% debt. Current expected return from shareholders is 10%, while prevailing interest rates is 4%. Tax rate is 20%.
a. Compute the companys Weighted Average Cost of Capital WACC.
b. Compute NPV for each projects
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