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Assume a firm has the following information: Market risk premium (rm If ) = 10%. | Unlevered beta (B) is 1.5 Risk free interest rate
Assume a firm has the following information: Market risk premium (rm If ) = 10%. | Unlevered beta (B) is 1.5 Risk free interest rate (rf) is 3% Tax rate (t) is 15% Cost of debt (rd) is 5% Total debt (D) is 10 million SAR. Total Equity (E) is 20 million SAR. Calculate the following. Show your work. a. Capital Asset Pricing Model (CAPM). b. Weighted Average Cost of Capital (WACC).
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