The Bunsen Chemical Company is currently at its target debt ratio of 40 percent. It is contemplating

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The Bunsen Chemical Company is currently at its target debt ratio of 40 percent. It is contemplating a $1 million expansion of its existing business. This expansion is expected to produce a cash inflow of $130,000 a year in perpetuity.

Is Miss Ethylene right? How would you evaluate the project?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 04:34 AM

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The Bunsen Chemical Company is currently at its target debt ratio of 40 percent. It is contemplating

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Note the following The costs of debt and equity are not 85 and 19 respectively These figures assume ...View the full answer

Principles of Corporate Finance

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