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Could someone show me how to solve this using Excel if possible? Please show your work on Excel if you can. Thank You CoffeeStop primarily
Could someone show me how to solve this using Excel if possible? Please show your work on Excel if you can. Thank You
CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 38% and collects the following information. If it plans to finance 11% 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 5.3%, a risk-free rate of 3.8%, and a market risk premium of 6.9%. CoffeeStop BF Liquors Beta 0.59 0.25 %Equity 94% 89% %Debt 6% 11% The weighted average cost of capital is (Round to two decimal places)Step by Step Solution
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