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a) The Crew is a trendy coffee shop on campus. Its common stock has a beta of 0.95. The market return is 10% and the
a) The Crew is a trendy coffee shop on campus. Its common stock has a beta of 0.95. The market return is 10% and the risk-free rate is 2.7%. What is The Crews cost of equity capital?
b) Whole Goods, an organic grocery store, has a 10.9% cost of equity and a 5.7% cost of debt. Its capital structure is 70% common stock and 30% debt. The corporate tax rate is 23%. What is Whole Goods WACC?
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