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5)Estimate the cost of debt for the Eureka Company, which has a corporate tax rate of 43%, that just issued a bond with maturity of
5)Estimate the cost of debt for the Eureka Company, which has a corporate tax rate of 43%, that just issued a bond with maturity of ten years priced at par with an annual coupon rate of 12%.
6)If the market return is 11.3% and the risk-free rate is 5.5%, then Helena Company with beta 1.46 should have the following equity cost of capital:
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