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Know how to calculate a firm's MARR from its financing structure (debt versus equity), borrowing costs, owners' acceptable rate of return, and corporate income tax rate. For example, what is the firm's MARR if: (a) it is financed 25% by owners' equity and 75% by debt, (b) owners, require a 5% rate of return, (c) lenders charge 9% interest, and (d) its corporate tax rate is 35%?

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Financial Management, Finance

Category:- Financial Management
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