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Turnbull Companyis considering a project

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solution


Question

Turnbull Companyis considering a project that requires an investment of $1,708,000. The capital will be raising by issuing $750,000 of debt at a before-tax cost of 10.2%, preferred stock of $78,000 at a cost of 11.4% & $880,000 of equity of 14.3%. The tax rate for the company is 40%.;What is WACC for the project?;10.58%;7.41%;8.99%;10.05%

 

Paper#34351 | Written in 18-Jul-2015

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