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. 2. Assume the risk-free rate is 5%, a firm's required rate of return on its debt is 6%, the equity beta is 1.4, the
. 2. Assume the risk-free rate is 5%, a firm's required rate of return on its debt is 6%, the equity beta is 1.4, the market risk premium is 5.5%, and the corporate tax rate is 34%, and the debt-equ...
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