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4. Assume the following scenario of firm XYZ: market value of stock = $14 million, total value of debt = $9 million, Equity beta =

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4. Assume the following scenario of firm XYZ: market value of stock = $14 million, total value of debt = $9 million, Equity beta = 1.9, risk-free rate = 5.32%, expected market return =12.7%, taxes = 0%, cost of debt = 11.57% a. Based on the above information, what is the expected risk premium? b. What is the Expected return on equity? c. What is the weighted Average Cost of Capital

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