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How to answer 7. Using the CAPM, the cost of equity of a firm if the risk-free rate is 5.50%, beta is 1.20, and market

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7. Using the CAPM, the cost of equity of a firm if the risk-free rate is 5.50%, beta is 1.20, and market return is 8% would be 8.50% 8.00% 7.50% 7.00% 8. Using the CAPM, the cost of equity of a firm if the risk-free rate is 10.00%, beta is 1.00, and market return is 8% would be 8.50% 8.00% 7.50% 7.00%9. The cost of debt if the risk free rate is 7.50% with the debt margin of 2.50% would be a. 10.00%b. 7.00% C. 5.00% d. 4.55% 10. The after-tax cost of debt if the risk free rate is 5.00% with the debt margin of 2.00% and tax rate is 35%, would be a 10.00% 7.00% C. 5.00% d. 4.55% 11. The reasonable weighted average cost of capital for a firm that has a cost of equity of 15% and after tax cost of debt of 9% where the tax rate is 30% and debt ratio is 60% is a. 11.40% b. 10% C. 9.78% 8.80%

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