00:01
Hello students, let's solve this problem.
00:02
The problem says the photographic corporation manufacture time series photographic equipment, it is currently at its target debit equity rate of 0 .66.
00:19
It is considering the building of a new, the dollar is given 65 .6 million manufacturing facility.
00:30
This new plant is expected to generate after tax cash flow of $7 .81 million in properties.
00:42
So the company rise all the equative from the outside financing, there is a three financials options are given.
00:51
So we have to solve this problem.
00:55
So target, so you can write down here, that is target.
01:01
Debate equity ratio that is 0 .3 of 6 .6.
01:14
Now the proposition of debit that is equal to 0 .39759.
01:31
Next is proposition of equity...