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Based upon the characteristics for Eze Corp, which is located in Estonia, determine its weighted average cost of capital for an Estonian investor Estonian risk-free
Based upon the characteristics for Eze Corp, which is located in Estonia, determine its weighted average cost of capital for an Estonian investor Estonian risk-free rate: 6.00% Estonian equity market risk premium: 4.75% Eze Corp beta: 1.2 Estonian corporate income tax rate: 28.5% Enterprise value for Eze Corp (ie market value of debt and equity): EUR 2.75bn Eze Corps market value of outstanding debt EUR 1,787,500,000 The weighted average interest rate on Eze Corps outstanding debt is 10.75%pa.
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