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Business, 03.09.2021 17:50 CourtGard

Will and Ben Ice Cream plans to build a new mixing plant to serve customers in Mexico. Because the company is in good financial shape with equity funds returning 11% per year, the bank will charge an interest rate of 7.75% per year for the loan. An MARR that is 3.5% over the WACC is required to proceed with the project, which sets the MARR at 14%. What percentage of debt financing can the company expect to meet its MARR requirement

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