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13.3 Aidan's Cost of Capital. Terry McDermott now esti- mates Aidan's risk-free rate to be 3.60%, the com- pany's credit risk premium is 4.40%, the

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13.3 Aidan's Cost of Capital. Terry McDermott now esti- mates Aidan's risk-free rate to be 3.60%, the com- pany's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta is estimated at 0.85, and the company's capital struc- ture is now 30% debt. All other values remain the same as those presented in the section Sample Calculation: Aidan's Cost of Capital." For both the domestic CAPM and ICAPM, calculate the following: a. Aidan's cost of equity b. Aidan's cost of debt c. Aidan's weighted average cost of capital 13.4 Aidan and Equity Risk Premiums. Using the original weighted average cost of capital data for Aidan used in the section Sample Calculation: Aidan's Cost of Capital, calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.00% b. 700% c. 5.00% d. 4.00% 13.3 Aidan's Cost of Capital. Terry McDermott now esti- mates Aidan's risk-free rate to be 3.60%, the com- pany's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta is estimated at 0.85, and the company's capital struc- ture is now 30% debt. All other values remain the same as those presented in the section Sample Calculation: Aidan's Cost of Capital." For both the domestic CAPM and ICAPM, calculate the following: a. Aidan's cost of equity b. Aidan's cost of debt c. Aidan's weighted average cost of capital 13.4 Aidan and Equity Risk Premiums. Using the original weighted average cost of capital data for Aidan used in the section Sample Calculation: Aidan's Cost of Capital, calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.00% b. 700% c. 5.00% d. 4.00%

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