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Hello need help with solving the following question please solve all parts and show work clearly Will leave rating for correct answer with clear work
Hello need help with solving the following question please solve all parts and show work clearly
Will leave rating for correct answer with clear work
Your company is financed 40% with debt and 60% with equity. The internal rate of return on the company's debt is 7%, the equity has a beta of 1.5. The risk-free rate of return is 5% and the market risk premium is 6%. The corporate tax rate is 30%. 1) What is the company's cost of capital or unlevered cost of equity? ii)What is the company's weighted average cost of capital (WACC)?||Step by Step Solution
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