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A firm's stock has a market capitalization of 420 million and an equity beta of 1.38. The firm's debt cost of capital is 5.2% and
A firm's stock has a market capitalization of 420 million and an equity beta of 1.38. The firm's debt cost of capital is 5.2% and their asset cost of capital is 7.3%. The risk free rate is 3.3% and the expected return of the market portfolio is 8.7%. Suppose that the CAPM assumptions hold. Calculate the amount of outstanding debt held by the firm. O 773 million 0 732 million 690 million 815 million O 649 million
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