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3. You have the following data for Reid & Company: $400 million of debt outstanding Market yield on debt - 6% 10 million shares of

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3. You have the following data for Reid & Company: $400 million of debt outstanding Market yield on debt - 6% 10 million shares of common stock outstanding Book value per share of common stock, $15 Market value per share of common stock, $20 Common stock beta - 1.2 One-year Treasury Bill rate - 1% Expected return on the market portfolio - 8% What is the weighted average cost of capital for this company

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