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Acetate, Inc., has equity with a market value of $23 million and debt with a market value of $7 million. Treasury bills that mature in

Acetate, Inc., has equity with a market value of $23 million and debt with a market value of $7 million. Treasury bills that mature in one year yield 5 percent per year, and the expected return on the market portfolio is 12 percent. The beta of Acetates equity is 1.15. The firm pays no taxes. a. What is Acetates debtequity ratio? b. What is the firms weighted average cost of capital? c. What is the cost

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