Question
4. Tri Co. has the following cost of debt structure: wd 0% 20% 30% 40% 50% rd 0.0% 10.0% 12.0% 14.0% 15.0% The market risk
4. Tri Co. has the following cost of debt structure: wd 0% 20% 30% 40% 50% rd 0.0% 10.0% 12.0% 14.0% 15.0% The market risk premium is 7%, the risk free rate is 4%, beta of unleveraged firm is 1.10, Hamadas equation b= bU [1 + (1 - T)(wd/we)]. Tax rate T = 35%. Please use the above information to answer following questions: a. If the firm uses 40% debt, what is the cost of equity of the firm, based on CAPM model? b. What is WACC of the firm? c. If FCF0 = 300 million, g=4%, what is the firm value?
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Forex Analysis And Strategies For Day Traders Profitable Investing With Currency Swaps Hedges And Scalps For Both Beginning And Advanced Traders
Authors: Steve Alkandros
1st Edition
1545117039, 978-1545117033
