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1) The risk free rate currently have a return of 2.5% and the market risk premium is 5.21%. If a firm has a beta of

1) The risk free rate currently have a return of 2.5% and the market risk premium is 5.21%. If a firm has a beta of 1.42, what is its cost of equity?

2) The cost of capital for a firm with a 60/40 debt/equity split, 4.97% cost of debt, 15% cost of equity, and a 35% tax rate would be....?

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