Question: this was all tbe info given Dyrdek Enterprises has equity with a markat value of $12.3 million and the market valuo of debt is 54.30m

 this was all tbe info given Dyrdek Enterprises has equity with
this was all tbe info given
a markat value of $12.3 million and the market valuo of debt

Dyrdek Enterprises has equity with a markat value of $12.3 million and the market valuo of debt is 54.30m ilikon. The corrpany is evaluating a new project that has more risk than the firm. the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.50 million today and provide annual cash flows of for the next 6 years. The company's cost of equity is 11.67 percent and the pretax cost of debt is 5.03 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice $232.291 $502,534 $201,730 $362,367 $210,989 Dyrdek Enterprises has equity with a market value of $12.3 million and the market value of debt is $4.30 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.50 million today and provide annual cash flows of $651,000 for the next 6 years. The company's cost of equity is 11.67 percent and the pretax cost of debt is 5.03 percent. The tax fate is 21 percent. What is the project's NPV? Multiple Choice $232,291 $502,534 $201,730 $362.367 $210.989

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!