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Compute the WACC of a hypothetical firm, if you know the return in the market, the risk free rate, the cost of debtand unlevered bhetaare
Compute the WACC of a hypothetical firm, if you know the return in the market, the risk free rate, the cost of debtand unlevered bhetaare .12, .02, .08 and 1,and the weights of debt and equity are 40% and 60% .respectively domestically. In the foreign nation, respective values are .14, .04, .1, 1.3, 70% and 30%. Furthermore, the weights of debt of the foreign nation is .8 out of a total debt weight of .65, while the debt of the parent company (in the US) is .2.
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