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Cost of the equipment is $2 million. It is estimated that the aftertax cash inflows from the project will be $210,000 annually in perpetuity. The market value debttoassets ratio is 40%. The firm's cost of equity is 13%, its pretax cost of debt is 8%.The tax rate is 34%. If the debt to assets ratio is 40% as stated above, how would i determine equity?
 one year ago
 one year ago
Cost of the equipment is $2 million. It is estimated that the aftertax cash inflows from the project will be $210,000 annually in perpetuity. The market value debttoassets ratio is 40%. The firm's cost of equity is 13%, its pretax cost of debt is 8%.The tax rate is 34%. If the debt to assets ratio is 40% as stated above, how would i determine equity?
 one year ago
 one year ago

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