Question: ABC Inc. is evaluating a project. The ABC intends to use 3 0 % debt in funding the project. ABC identifies 5 comparable companies with
ABC Inc. is evaluating a project. The ABC intends to use debt in funding the project. ABC identifies comparable companies with the following equity betas and debtequity ratios. While the comparable companies have varying marginal tax rates ABCs marginal tax rate is The current tenyear treasury rate is and the EMRP is estimated to be about The yield on the company's corporate bonds is
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