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Adobe Online, Inc. has an equity beta of 1.29 and a debt-to-equity ratio of 0.25. The beta of the common stock is 1.15 while the

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Adobe Online, Inc. has an equity beta of 1.29 and a debt-to-equity ratio of 0.25. The beta of the common stock is 1.15 while the beta of the debt is 0.3. The market-risk premium is 10 percent and the risk-free rate is 6 percent. The corporate tax rate is 35 percent. (a) What is Abobe's cost of equity? (b) What is Adobe's weighted average cost of capital (rwace)? Adobe Online, Inc. has an equity beta of 1.29 and a debt-to-equity ratio of 0.25. The beta of the common stock is 1.15 while the beta of the debt is 0.3. The market-risk premium is 10 percent and the risk-free rate is 6 percent. The corporate tax rate is 35 percent. (a) What is Abobe's cost of equity? (b) What is Adobe's weighted average cost of capital (rwace)

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