Question: please please solve this problem urgently and perfectly. make sure to give correct answer urgently and perfectly. mention correct answer as you give Solar Power

 please please solve this problem urgently and perfectly. make sure to

please please solve this problem urgently and perfectly. make sure to give correct answer urgently and perfectly. mention correct answer as you give

Solar Power Corp. has the following capital structure: Assume the CAPM is correct. The risk-free rate is 4% and the market risk premium is 8%. Solar Power is considering investing in a new project (similar to its existing projects) that generates an expected EBIT (earnings before interest and taxes) of $13 million annually in perpetuity. The tax rate is 25%. What is the value of the project (in millions), assuming Solar Power always maintains its current debt-equity ratio. 13097.5133.33100 Solar Power Corp. has the following capital structure: Assume the CAPM is correct. The risk-free rate is 4% and the market risk premium is 8%. Solar Power is considering investing in a new project (similar to its existing projects) that generates an expected EBIT (earnings before interest and taxes) of $13 million annually in perpetuity. The tax rate is 25%. What is the value of the project (in millions), assuming Solar Power always maintains its current debt-equity ratio. 13097.5133.33100

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