Question: 39. A project has expected cash flows as shown below: Year 0 Net Cash Flow -25.000 5.000 4,000 8,000 7,000 5-7 8 9 If the
39. A project has expected cash flows as shown below: Year 0 Net Cash Flow -25.000 5.000 4,000 8,000 7,000 5-7 8 9 If the firm's discount rate is 12 percent, what is the NPV of this project? 40. Ma, Inc. has a market value capital structure of 30% debt and 70% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $930. These bonds have a par value of S1,000, coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $20 per share. The firm has just paid a dividend of S2. Future dividends are expected to grow at 3% per year. Based on this information, Ma, Inc.'s WACC is %. (Record your answer for this problem rounded to 2 decimal places)
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