Question: please help! i need to make a chart for my answers with this to indicate the numbers and which project should be taken. Robinson Corporation
please help! i need to make a chart for my answers with this to indicate the numbers and which project should be taken. Robinson Corporation considers its optimal capital structure to be percent debt
and percent common stock. Robinson can borrow unlimited amounts at
percent. The common stock can be issued with a required return of
Robinson has a tax rate of percent.
Robinson is considering four investment proposals:
When Robinson evaluates a project, they consider the level of risk. If the risk
level is high, Robinson adds a premium of three percent to the WACC. If the risk
level is low, Robinson subtracts one percent.
Required:
a Determine Robinson's weighted average cost of capital WACC
b Determine Robinson's optimal capital budget.
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