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A company has an equity beta 1.16 and deb-to-equity ratio of 1. The expected market portfolio return is 10%. the interest rate on government bonds
A company has an equity beta 1.16 and deb-to-equity ratio of 1. The expected market portfolio return is 10%. the interest rate on government bonds is 5%. the company can borrow long term at a rate of 6%. the corporate tax rate is 40%. what is the cost of equity and cost of capital
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