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johnpaech johnpaech
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Posts: 1098
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6 years ago
Assume that to fund the investment Taggart will take on $150 million in permanent debt with the remainder of the investment funded through issuance of new equity. Assuming Taggart will incur a 2% (after-tax) underwriting fee on the new debt issue and a 5% underwriting fee on the issuance of new equity, the NPV of Taggart's new rail line is closest to:
A) $195 million
B) $200 million
C) $235 million
D) $240 million
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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Posts: 422
6 years ago
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johnpaech Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Yesterday
This helped my grade so much Perfect
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2 hours ago
Brilliant
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