IP Cost of Capital Problem

00 q24 value of bonds issued 4000 q25 value of stock

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Unformatted text preview: Issued -$40.00 Q26 What happens to the $ value of approved projects if interest rates rise? rises and less projects are approved. Decreases Why? WACC Q27 What happens to the $ value of approved projects if interest rates fall? falls and more projects are approved. Increases Why? WACC Q28 What happens to the $ value of approved projects if corporate taxes rise? rate costs fall (more subsidy), but after tax project revenues fall more. Decreases Why? Interest Q29 What happens to the $ value of approve...
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