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Cash Flow Inc. stock has a of . 8 5 . and a credit rating of BBB . Currently, BBB rated firms have average credit
Cash Flow Inc. stock has a of and a credit rating of BBB Currently, BBB rated firms have average credit spreads of above a comparable Treasury rate. Assume Cash Flow Inc's debt faces the same yield as an average BBB rated firm. If the risk premium for the market or rm rF is the appropriate Treasury rate or riskfree rate is and uses debt financing, estimate the firm's cost of debt, cost of equity, and weighted average cost of capital.
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