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Here is some data for Carion Crypto Solutions Inc. (CCSI): Market to book ratio 2.00 :1 Book value of equity 250,000.00 Shares outstanding 1,000.00 Beta
| Here is some data for Carion Crypto Solutions Inc. (CCSI): | |||||
| Market to book ratio | 2.00 | :1 | |||
| Book value of equity | 250,000.00 | ||||
| Shares outstanding | 1,000.00 | ||||
| Beta | 2.00 | ||||
| Risk free rate | 3.75% | ||||
| Market premium | 12.50% | ||||
| Debt face value | $ 1,000,000 | ||||
| Term to maturity of debt | 10 | yrs | |||
| Coupon rate on debt | 3.75% | paid semi-annually | |||
| Current market price of debt | 103.00 | ||||
| Tax rate | 35.00% | ||||
| Required: | |||||
| Calculate the weighted average cost of capital for CCSI. | |||||
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
