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A company has $330 million of debt and 50 million common shares outstanding worth $10.4 each. You estimate that the company could issue new debt
A company has $330 million of debt and 50 million common shares outstanding worth $10.4 each. You estimate that the company could issue new debt at an interest rate of 3.3%. The company's tax rate is 19.8%, beta is 1.6, the risk-free rate is 0.8%, and the expected market return is 7.1%. what is the company's weighted average cost of capital?
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The Handbook Of Portfolio Mathematics
Authors: Vince
1st Edition
0471757683, 978-0471757689
