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Calculate the cost of capital of a using the following information: Amount of debt: 243 million dollars. Amount of equity: 105 million dollars. Interest rate
Calculate the cost of capital of a using the following information: Amount of debt: 243 million dollars. Amount of equity: 105 million dollars. Interest rate on the debt: 4.81%. Tax rate: 21%. Estimate the cost of equity using the CAPM model. MRP: 5%, Risk-free rate: 3%. Stock's beta: 1.43. Save your work in Excel under your name and upload the file to the assignment section of Unit 4 (My Excel file). Equity Debt nterest rate Tax rate Calculating weights Neight of equity Neight of debt Calculating cost of debt after taxes Cost of debt after taxes Using CAPM model Calculating cost of equity Expected risk free interest rate Expected market risk premium (MRP) Beta Cost of equity Calculating WACC Cost of capital
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