Quick-Link has debt outstanding whose market value is $200 million, and equity outstanding with a market value of $800 million. Quick-Link is in the 34% tax bracket, and its debt is considered riskless. Merrill Lynch has provided an equity beta of 1.50. Given a risk free rate of 3% and an expected market return of 12%, calculate the discount for a scale enhancing project in the hypothetical case that Quick-Link is all equity financed.

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The Answer of Quick-Link has debt outstanding whose market value is $200 million, and equity outstanding with a market value of $800 million. Quick-Link is in the 34% tax bracket, and its debt is considered riskless. Merrill Lynch has provided an equity beta of 1.50. Given a risk free rate of 3% and an expected market return of 12%, calculate the discount for a scale enhancing project in the hypothetical case that Quick-Link is all equity financed.

Quick-Link Has Debt Outstanding Whose Market Value Is $200 Million