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Dyrdek Enterprises has equity with a market value of $12.7 million and the market value of debt is $4,50 million. The co
Posted: Sun Jun 05, 2022 8:03 pm
by answerhappygod
- Dyrdek Enterprises Has Equity With A Market Value Of 12 7 Million And The Market Value Of Debt Is 4 50 Million The Co 1 (32.52 KiB) Viewed 63 times
- Dyrdek Enterprises Has Equity With A Market Value Of 12 7 Million And The Market Value Of Debt Is 4 50 Million The Co 2 (32.52 KiB) Viewed 63 times
Dyrdek Enterprises has equity with a market value of $12.7 million and the market value of debt is $4,50 million. The
company is evaluating a new project that has more risk than the firm. As a result, the
company will apply a risk adjustment factor of 2.2 percent. The new project will cost $2.58 million today and provide annual cash flows of $671,000 for the next 6 years. The
company's cost of equity is 11 83 percent and the pretax cost of debt is 5.07 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice O O $158,451 $377207 $579,510 $100,006 $102,000