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5 and 6 please! 5. Using the CAPM formula, what is the cost of BCDE's equity if it has a Beta of 1.2, a market
5 and 6 please! 5. Using the CAPM formula, what is the cost of BCDE's equity if it has a Beta of 1.2, a market return of 7%, and a risk-free rate of 2%? 6. Assume the following information and calculate the cost of debt and cost of equity for CDEIts tax rate is 30%, it pays 10% interest on debt, its common stock price is $12, growth rate of equity is 12%, and current dividend is $.50. Additionally, calculate the WACC If CDE would like to maintain 24% debt and 76% equity Cost of debt Cost of equity WACC
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