PPT Slide

Additional information

For differential project risk, add or sub-tract 2% to WACC.

Interest rate on new debt 8.0%

Tax rate 40.0%

Debt ratio 60.0%

Current stock price, P0 $20.00

Last dividend, D0 $2.00

Expected growth rate, g 6.0%

Flotation cost on CS, F 19.0%

Expected addition to RE $200,000

(NI = $500,000, Payout = 60%.)

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