IP Cost of Capital Problem

62 kdpg q19 k capm 1450 krfbmrp average k 1356 q20

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Unformatted text preview: (MRP) Average K 13.56% Q20 Funding Targets Target Mix Capital ### Equity ### 50% Debt ### 50% Q21 6.78% 2.18% What is the company projected WACC? 8.95% WACC Project 8.95% A B C D Cost -40 -30 -30 -20 Year1 12 9 18 -3 After-Tax revenue or costs saving from projects (1) Year2 Year3 PV NPV Approved $ 15 18 37.57 -2.43 0 12 18 32.29 2.29 -30 12 9 33.59 3.59 -30 -6 42 24.66 4.66 -20 Q22 Project Demand -$120.00 Q23 Value of approved projects -$80.00 Q24 Value of Bonds Issued -$40.00 Q25 Value of Stock...
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This note was uploaded on 07/17/2013 for the course CBBU 1003 taught by Professor Prof.algreco during the Spring '11 term at Fordham.

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