A firm is considering an average-risk project with an irr, Ask an Expert

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A firm is considering an average-risk project with an IRR of 6%. The firm's cost of debt (KD) is 5%, its cost of equity (KE) is 12%, and its tax rate (t) is 20%. The target debt ratio (D/(D+E)) for the project, in market values, is 0.5. The firm should:

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Financial Management, Finance

Category:- Financial Management
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