the overall cost of capitale for pense does not affect the NPV calculation at all because it is a financing wem. terest

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The Overall Cost Of Capitale For Pense Does Not Affect The Npv Calculation At All Because It Is A Financing Wem Terest 1 (20.91 KiB) Viewed 33 times

the overall cost of capitale for pense does not affect the NPV calculation at all because it is a financing wem. terest increases the weighted average cost of capital (WACO 8) JB Inc. pays dividends of $0.50 per share. Its current share price is $8.75 while the market expects JB to continue to pay $0.50 every year forever. However, the founder and chairman of the board of directors unexpectedly replaces the CEO with his inept son. As a result, the market new expects dividends to decreass by 5per year, starting with the next dividend. If the firm's level of risk does not change, what should its new share price be? A) $16.67 B) $0.00 C) $7.52 D) $5.57 E) -$4.36 9) Prhomh Inc's competitors' camnings before interest, taxes, depreciation, and amortization