This company pays a tax rate

Reference no: EM133491921

Question: The company Peaches, Peaches, S.A. de C.V. You want to start a new project that guarantees an IRR of 10% and requires an investment of $1,200,000. Shareholders can contribute $800,000 and expect a return of 20%, the rest would be financed by a bank loan at a rate of 17%. This company pays a tax rate of 28%. Calculate the Weighted Average Cost of Capital (WACC) with the given information.

Reference no: EM133491921

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