![Business](/tpl/images/cats/ekonomika.png)
Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.89 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .80, a cost of equity of 12.9 percent, and an aftertax cost of debt of 5.7 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 1 percent to the cost of capital for such risky projects. What is the maximum initial cost the company would be willing to pay for the project?
![answer](/tpl/images/cats/otvet.png)
Answers: 2
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 12:30, bella51032
True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 17:00, ruchierosanp1n3qw
You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 20:30, whitems33982
When many scrum teams are working on the same product, should all of their increments be integrated every sprint?
Answers: 3
Do you know the correct answer?
Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.89 mi...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 04.02.2021 19:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 04.02.2021 19:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 04.02.2021 19:50
![Konu](/tpl/images/cats/en.png)
English, 04.02.2021 19:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 04.02.2021 19:50
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/es.png)
Spanish, 04.02.2021 19:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 04.02.2021 19:50