Question: 4 1 US based MLTN Engineering company is currently at Its target debtequity ratioof 4:5. It is evaluating a proposal to expand capacity which Is
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1 US based MLTN Engineering company is currently at Its target debtequity ratioof 4:5. It is evaluating a proposal to expand capacity which Is expected to cost USD 4.5 million and generate after-tax cash flows of USD 1 million per year for the next ten years. The tax rate for the company Is 25%. Two financing options are being looked at: [ii Issue of equity stock The required return on the company\": new equity is 18%. The issuance cost will be 1096. [ii] Issue of debentures carrying a yield of 1256. The issuance cost will be 2%. What is NW of the expansion project? a. What are the skills needed to become a technical project manager
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