What is the project wacc supposing the marginal tax rate

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Question: MTIR is evaluating the financial viability of a new project in Brazil. The firm utilises only two sources of financing: long-term debt and common equity. Its long-term debt ratio is 43%. The project manager indicates that the cash flows will only be sufficient to handle a debt ratio of 21%. Common equity holders require a minimum return of 15.42% and the pre-tax cost of debt is 7.31%. What is the project WACC supposing the marginal tax rate is 25%?

Reference no: EM133715664

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What is the project wacc supposing the marginal tax rate : Common equity holders require a minimum return of 15.42% and the pre-tax cost of debt is 7.31%. What is the project WACC supposing the marginal tax rate is 25%

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