The firm finances the project with $24000 debt at 11% with $100 after-tax flotation costs. Principal is repaid at $3000
Posted: Sat Feb 26, 2022 9:02 am
The firm finances the project with $24000 debt at 11% with $100
after-tax flotation costs. Principal is repaid at $3000 per year
with added interest. Pearson’s tax rate is 60%. The net present
value of the project under leverage? Now, Should this project be
accepted?
after-tax flotation costs. Principal is repaid at $3000 per year
with added interest. Pearson’s tax rate is 60%. The net present
value of the project under leverage? Now, Should this project be
accepted?