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3. managers at ABC financial its investments with debt and equity. ABC information is projected below: assume perfect capital market equity beta - 1.5 debt

3. managers at ABC financial its investments with debt and equity. ABC information is projected below:

assume perfect capital market

equity beta - 1.5

debt beta - 0.2

cost of debt - 12%

market return - 15%

d/e - 1

1. what is the cost of equity

2. ' ' capital

3. whats the asset beta

4. perfect market besides 30% tax whats the cost of capital

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