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Both need to be answered plz RON Ltd has the following capital structure components: Five million shares issued with a current market price of 11.

Both need to be answered plz image text in transcribed
RON Ltd has the following capital structure components: Five million shares issued with a current market price of 11. Equity holders require a 8% return. exist10 million face value of Corporate bonds outstanding. These bonds pay an annual coupon of 6% and currently trade at a yield to maturity of 6% If the firm faces a corporate tax rate of 30%, compute RON Ltd's Weighted Average Cost of Capital (WACC). Enter your answer in decimal form to FOUR decimal places. For example 10.34%, would be entered as 0.1034 Consider the following linear regression model: (R_i - r_f) = alpha _i + b_i (R_Mkt - r_f) + e_i The e_i in the regression measures the sensitivity of the security to market risk. measures the diversifiable risk in returns. measures the historical performance of the security relative to the expected return predicted by the SML. measures the deviation from the best fitting line and is zero on average

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