=+The market value of the firm's equity is twice the value of its debt. The cost of
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=+The market value of the firm's equity is twice the value of its debt.
The cost of borrowed money to the company is estimated at 12 per cent (before tax shield benefits).
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Corporation tax is 30 per cent.
Assume: No inflation.
Required Estimate the equity cost of capital using the capital asset pricing model (CAPM).
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Corporate Financial Management And How To Write Essays And Assignments
ISBN: 978-1405882897
Coursepack Edition
Authors: Glen Arnold
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