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Common stock currently valued at $34 per share and has a beta of 1.3. Price earnings ratio of 4 adn their cost of equity is
Common stock currently valued at $34 per share and has a beta of 1.3. Price earnings ratio of 4 adn their cost of equity is 7.6%. Repurchase half their shares and substitute an equal value of debt which has a beta of 0.8 and rate of return of 3.5%. Find cost of equity, cost of capital stock price, beta of the stock.
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