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2 1 Check my work 9.72 points eBook The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital
2 1 Check my work 9.72 points eBook The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital is 12 percent, and its before-tax borrowing rate is 6 percent. Given a marginal tax rate of 30 percent. Required: a. Calculate the weighted-average cost of capital. b. Calculate the cost of equity for an equivalent all-equity financed firm. Print References Complete this question by entering your answers in the tabs below. Required A Required B Calculate the weighted-average cost of capital. Note: Do not round intermediate calculations. Round your answer as a percent rounded to 2 Weighted-average cost of capital Required A % Required B
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