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Calculate a company's weighted-average cost of capital if the shares have a beta of 1.5, Treasury bills yield 3% p.a., and the market portfolio offers
Calculate a company's weighted-average cost of capital if the shares have a beta of 1.5, Treasury bills yield 3% p.a., and the market portfolio offers an expected return of 9% p.a. In addition to equity, the company finances 50% of its assets with debt that has a yield to maturity of 7% p.a. The companys corporate tax rate is 28%.
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