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ABC Corp. is an e-commorce company, Its management is planning to start its own packlage delivery business (new to the firm) to be financed with

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ABC Corp. is an e-commorce company, Its management is planning to start its own packlage delivery business (new to the firm) to be financed with only equity, SF logistics and XYZ Entorpriso are two firms that specializes in this package delivery business. You are given the following financials for these firms: - ABC Corp, currently has a stock price of $18 per share with 25 mition shares outstanding. Its market value of dubt it $300 million. The company has a debt beta of 0,1 , an equity beta of 1.63 , and it faces a tax rate of 21%. - XYZ Enterprise is an ail-equity financed firm with market caipitalization of $250 million. The compary has an equity beta of 1.6 and facos a tox rate of 21%. - SF logistles has a stock price of $15 por share with 20 milion shares outstanding. its maket value of dobt is $300 million, The firm has a debt bela of 0.2 , an equity beta of 1.8 , and il faces a tax rate of 21%. Assume that the risk-free rafe is 1% and the expected macket risk premium is 5%. If the managoment of ABC asks for an estimate of coat of capital with a small estimotion ofror, thon your ostimate of the cost of capval for the ABCis package dotivery business is have orror 6. Note that if you

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