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A firm's capital structure consists of a $51 million loan with an interest rate of 4.91%, a $49 million bond issue rated BB, and 99
A firm's capital structure consists of a $51 million loan with an interest rate of 4.91%, a $49 million bond issue rated BB, and 99 million shares of common stock currently selling at $3.52 a share. The stock's beta is 1.15. 4. What is this firm's after-tax weighted average cost of debt? 5. What is this firm's cost of equity? 6. What is the total market value of the firm's equity? A firm's capital structure consists of a $51 million loan with an interest rate of 4.91%, a $49 million bond issue rated BB, and 99 million shares of common stock currently selling at $3.52 a share. The stock's beta is 1.15. 4. What is this firm's after-tax weighted average cost of debt? 5. What is this firm's cost of equity? 6. What is the total market value of the firm's equity
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