Question: will leave thumbs up Question 17 (4 points) What is the modified internal rate (MIRR) of return of a project with a $40,200 initial investment,

will leave thumbs up will leave thumbs up Question 17 (4 points) What is the modified

Question 17 (4 points) What is the modified internal rate (MIRR) of return of a project with a $40,200 initial investment, expected net cash flows of $10,700, 20,400, and $28,500 in each of the next three years, the finance rate is 9.9% and the reinvestment rate is 13.2%? (format of the answer: use percentage form with 2 decimal place, i.e. 16.20% is correct format, not 0.162, not 16.2%) A Question 18 (3 points) Modigliani and Miller (M&M) Proposition Il states: the cost of equity does not change when a firm takes on a greater proportion of debt the cost of equity increases when a firm takes on a greater proportion of debt the cost of capital increases when a firm takes on a greater proportion of debt the cost of equity decreases when a firm takes on a greater proportion of debt. Question 19 (3 points) Modigliani and Miller (M&M) Proposition 1 states: overall market value of the firm - market value of equity + market value of debt (1-tax rate) Value of a levered firm - Value of an unlevered firm + value of interest tax shields overall market value of the firm - market value of equitymarket value of debt the cost of equity doesn't change when a firm takes on a greater proportion of debt

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