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Use the Following Information to Answer the Question(s)below

Question 53

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Use the following information to answer the question(s) below.
Nielson Motors has a debt-equity ratio of 1.8,an equity beta of 1.6,and a debt beta of 0.20.It is currently evaluating the following projects,none of which would change Nielson's volatility. Use the following information to answer the question(s) below. Nielson Motors has a debt-equity ratio of 1.8,an equity beta of 1.6,and a debt beta of 0.20.It is currently evaluating the following projects,none of which would change Nielson's volatility. (All amounts are in $millions. ) -The total debt overhang associated with accepting project 1 is closest to: A) $0 million. B) $12.5 million. C) $14.4 million. D) $22.5 million. (All amounts are in $millions. )
-The total debt overhang associated with accepting project 1 is closest to:


A) $0 million.
B) $12.5 million.
C) $14.4 million.
D) $22.5 million.

Correct Answer:

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