Question: A company has a target capital structure with a debt ratio of 1/3 and common equity ratio of 2/3. The company's debt consists of 6%

A company has a target capital structure with a debt ratio of 1/3 and common equity ratio of 2/3. The company's debt consists of 6% coupon interest bonds trading at par (i.e. at $1,000 face value). The company's cost of common equity is 15% and the corporate tax rate is 40%. calculate What is the firm's WACC?

XYZ Inc. considers a project with an initial investment of $12,000 and expected cashflows of $4,000, $5,000, and $6,000 at the end of years 1, 2, 3, and 4, respectively.The cost of capital is 5%. calculate What is the NPV of this project?

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