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Company A primarily sells coffee. It recently introduced a new coffee-flavored liquor. Suppose the firm faces a tax rate of 35% and collects the following

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Company A primarily sells coffee. It recently introduced a new coffee-flavored liquor. Suppose the firm faces a tax rate of 35% and collects the following information Beta "Debt Company A 1.64 70% A Standard Coffee Liquors Company 0.26 85% If it plans to finance 85% of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 5.44%, a risk-free rate of 4.8% and a risk premium of 10.3%. NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign. QUESTION 16 You have started a company and a venture capitalist has offered to invest. You own 100% of the company with 5,930,234 shares. The VC offers $1,463,258 for 1,276,551 new shares What is the implied price per share? NOTE: Submit your answers with 4 decimals after the dot. Do not include the "s" sign QUESTION 17 You have started a company and a venture capitalist has offered to invest. You own 100% of the company with 6,355,454 shares. The VC offers $1,756,400 for 1,225,617 new shares. What is the post-money valuation? NOTE: Submit your answers with 4 decimals after the dot. Do not include the "S" sign

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