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Calculate the cost of equity considering that Company W has a weighted average cost of capital (WACC) of 4,5%, a total value of debt and
Calculate the cost of equity considering that Company W has a weighted average cost of capital (WACC) of 4,5%, a total value of debt and equity of EUR 5,650,000, and hold 50% in debt. The company borrows at a cost of 2%. Company W pays 35% tax. An investor bought shares of Company W and as a return on investment of 5%, did he made a cost-effective decision?
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