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Business, 05.05.2020 08:29 pandamaknae2003

Georgia Movie Company has a capital structure with 40.00% debt and 60.00% equity. The cost of debt for the firm is 8.00%, while the cost of equity is 14.00%. The tax rate facing the firm is 40.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $2.60 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period. What is the WACC for this project

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Georgia Movie Company has a capital structure with 40.00% debt and 60.00% equity. The cost of debt f...
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