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5. You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have

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5. You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: rRF m 4.10%; RPM = 5.25%; and b-1.30. Based on the CAPM approach, what is the cost of common from retained earnings? a. b. c. d. 9.67% 9.97% 10.28% 10.60% 10.93% 6, Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rte on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock, what is A WACC? a, 8.15% 8.48% c. 8.82% d. 9.17% e. 9.54% before tax cost of debt is 9.0%. Its cost of preferred stock

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