[hanna]

Ahhhhhhhh. Thanks

[hanna]

Thanks.

[hanna]

Thank you

[hanna]

The below questions stem from this quote from above: “…However, this project is effectively equity financed so there would be no tax benefits flowing from the finance, so a risk adjusted discount rate could be used…”

Do you mean that if the firm was fully equity financed before the project and the rights issue was done for the new project, then we use risk-adjusted WACC?

And if the firm had both debt+equity structure before the project and a rights issue was done for the new project,then we use APV?

[hanna]

Thank you sir!

[hanna]

Good day sir,

How is it a growing perpetuity?

[hanna]

Thank you sir!

I did view the notes but was a little unsure about this one.

Thanks 🙂

[Author]

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