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Calculate the weighted average cost of capital for a company given the following: Risk-free rate in the U.S.: 2.60% Expected U.S. market risk premium: 11%
Calculate the weighted average cost of capital for a company given the following: Risk-free rate in the U.S.: 2.60% Expected U.S. market risk premium: 11% Companys systematic risk: 1.12 The company has 5-year, 10% bonds (paid semi-annually), the face value of $1,000, selling for $1,039.56. The companys marginal tax rate: 30% The company finances 32% of its capital by debt and 68% by common equity. Please show work with Excel formulas
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