Assume the firms target capital structure is 60 percent


Assume the firm's target capital structure is 60 percent equity and 40 percent debt with after tax costs of 18% and 10.5% respectively. Assume the following cash follows: CF0 = -$1,000, CF1 = $700, CF2 = $700. What is the NPV?

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Financial Management: Assume the firms target capital structure is 60 percent
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