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3) Using the following information, calculate the Weighted Average Cost of Capital (Ka) for the Carmel Restaurant: Capital Structure is 40% debt/ 60% equity, Interest

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3) Using the following information, calculate the Weighted Average Cost of Capital (Ka) for the Carmel Restaurant: Capital Structure is 40% debt/ 60% equity, Interest Rate (Kdbt) 7.5%, tax rate = 30%, market portfolio (Km) = 10.5%, risk-free rate = 4%, beta is estimated at 0.9 and the company has enough in new retained earnings to finance the equity portion of the capital budget

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