Corporate Finance Assignment/ Professional Essay Writers
May 9th, 2020
How is the cost of capital for a project determined if using the pure-play approach?
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Corporate Finance Assignment/ Professional Essay Writers
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Select one:
a. Use the cost of equity for the company adjusted by the risk rating of the company’s bonds.
b. Adjust with the discount rates until you get a positive NPV.
c. Use the cost of capital of another company exclusively involved in the same type of project.
d. Use the company’s own weighted-average cost of capital for the project
e. Perform a simulation analysis and then adjust by the dividend yield. Get Finance Help Today