Capital-Budgeting-Investment-Valuation-assignment-help-

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In 750-1,000 words, respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas. APA formatting. 3 references

 â€œWe can determine the target WACC for Apix Printing Inc., given these assumptions.

  • Weights of 40% debt and 60% common equity (no preferred equity)
  • A 35% tax rate
  • Cost of debt is 8%
  • Beta of the company is 1.5
  • Risk-free rate is 2%
  • Return on the market is 11%

Complete the following:

  • Describe capital structure.
  • Determine the WACC given the above assumptions.
  • Indicate how these might be useful to determine the feasibility of the capital project.
  • Recommend which is more appropriate to apply to project evaluation.
  • Define marginal cost of capital.