Should a company invest in a new opportunity

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Reference no: EM132937849

Question - Should a company invest in a new opportunity based on the information below?

Weights of 40% debt and 60% common equity (not preferred equity),

35% tax rate,

8% cost of debt,

1.5 beta of the company,

2% risk-free rate, and

11% return on the market.

11.38% WACC.

Reference no: EM132937849

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