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Investment Management

Given the information below how would you determine IRR and WACC, ie formulas used?

Equity shares outstanding - 20 million
Stock price per share - 10
Yield to maturity debt - 12
Book value of interest-bearing debt - 180 million
Coupon interest rate on debt - 7%
Market value debt - 200 million
Book value of equity 100 million
Cost of Equity Capital - 15%
Tax rate - 40%

Solution Summary

Question fully answered in excel and a word file.

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