The CFO gathered the following data. Dunaway Industries is evaluating the idea of expanding their production facility in Cobb County. Dunaway Industries spent $500,000 researching other sites for their expansion.
The appropriate tax rate for Dunaway Industries is 30%. The capital of the firm includes 70% of equity and 30% of debt. The bond has a coupon rate of 7.50% semiannually. The $1,000 par bond sold for $956.77.
The stock price is $22.00.
33. What is the WACC of the firm?
a. 12.18%
b. 12.28%
c. 12.65%
d. 12.55%
e. 12.88%
34. What is the depreciation expense per year created by the project?
a. $2,720,000
b. $2,780,000
c. $1,240,000
d. $1,230,000
e. $1,220,000