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Capellanes S.L. has a target capital structure of 50 percent common stock and 50 percent debt. Its cost of equity is 25 percent, and the

Capellanes S.L. has a target capital structure of 50 percent common stock and 50 percent debt. Its cost of equity is 25 percent, and the cost of debt is 4 percent. You are requested to prepare a DCF calculation considering that the investment takes place in Spain, where the applicable tax rate is 25%, find the required discount rate.

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