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Assuming that in 2013 ABCs market value of debt to be $15961mn and the market value of equity to be $121878 mn. The pre-tax cost

Assuming that in 2013 ABCs market value of debt to be $15961mn and the market value of equity to be $121878 mn. The pre-tax cost of debt for ABC is 3.75%. Estimate the cost of capital for Prithvi assuming beta to be 1.0013 and Rf and MRP to be 2.75% and 5.76 % respectively. Consider the marginal tax rate= 36.1

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