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A firm is 65% equity. T-Bills are expected to return 29. Its effective tax rate is 898 It has 65% of its debt in bonds
A firm is 65% equity. T-Bills are expected to return 29. Its effective tax rate is 898 It has 65% of its debt in bonds denominated in euros and 35% in US dollar. The euro debt has a euro YTM of 5.5%, the US dollar debt has a YTM of 69. The 1-year LIBOR rate in euros is 39 in USD is 4.5% The firm's global beta 1.10) Assume a global risk premium of 5% wer e 35, 22 Elbard 8. What is the cost of equity? 5465 - 35 =Rf + (GRP)* Bg Amesos ytmz6% 1- yubor 34 Lib. 4.57. 22+ (521-10) -7.51 9. What is the cost of debt? det e Rd .6 S Relet.35Rots = 65174) + 35164) 4.55 +2.1= 6.6 usepulribe - S.St.+4.51-37 224 10. What is the WACC? ) A firm is 65% equity. T-Bills are expected to return 29. Its effective tax rate is 898 It has 65% of its debt in bonds denominated in euros and 35% in US dollar. The euro debt has a euro YTM of 5.5%, the US dollar debt has a YTM of 69. The 1-year LIBOR rate in euros is 39 in USD is 4.5% The firm's global beta 1.10) Assume a global risk premium of 5% wer e 35, 22 Elbard 8. What is the cost of equity? 5465 - 35 =Rf + (GRP)* Bg Amesos ytmz6% 1- yubor 34 Lib. 4.57. 22+ (521-10) -7.51 9. What is the cost of debt? det e Rd .6 S Relet.35Rots = 65174) + 35164) 4.55 +2.1= 6.6 usepulribe - S.St.+4.51-37 224 10. What is the WACC? )
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