Question: please show all work and equations and ill rate thumbs up! thank you! 9. (10 points) Computational FlyByNite, Inc. is considering a project that will
please show all work and equations and ill rate thumbs up! thank you!9. (10 points) Computational FlyByNite, Inc. is considering a project that will result in initial after-tax cash savings of $5 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of 0.8, a cost of equity of 20 percent, and a cost of debt of 16 percent. The corporate tax rate is 25%. a. (5 points) What is FlyByNite's WACC? b. (5 points) Under what circumstances should FlyByNite take on the project
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