NO This is a subjective question hence you have to write your answer in the Text-Field given below XYZ Corp. has 10 mill

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No This Is A Subjective Question Hence You Have To Write Your Answer In The Text Field Given Below Xyz Corp Has 10 Mill 1 (46.28 KiB) Viewed 76 times

NO This is a subjective question hence you have to write your answer in the Text-Field given below XYZ Corp. has 10 million shares of common stock outstanding. The common stock currently sells for $50 per share and has a beta of 150 XYZ Corp, has 300,000 bonds outstanding and sell for 105% of par value. The ytm (vield to maturity) of the bond is 5% p.a. The market risk premium is 6%, T-bills are yielding 3% p.a and corporate tax rate is 30%. All p.a. rates are EAR What is the firm's market value capital structure (1.e. Market value of debt Market value of equity)? What is the firm's cost of capital? If XYZ Corp is evaluating a new investment project that has an investment of $10 million af year 0 and is expected to have a cash flow of $3 million from Year 1 onwards growing at the rate of 6% p.a. foreser, what is the NPV of the project? [10]