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At 2018 ABI Construction has a face debt value of 29.80M trading at 92% with a pre-tax weigthed cost of 4.40%. ABI common equity for
At 2018 ABI Construction has a face debt value of 29.80M trading at 92% with a pre-tax weigthed cost of 4.40%. ABI common equity for the year was valued at 81.15M and preferred equity for 10.42M. The Preferred equity rate was calculated to be 8.13%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.55 Beta. If the tax rate is 42%, What is this firms WACC?
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