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HW#2 Determine FTX's cost of capital considering the following information: Stock Info Value of Common Stock = $1.296B Beta = 0.9 Bond Info Value of
HW#2 Determine FTX's cost of capital considering the following information: Stock Info Value of Common Stock = $1.296B Beta = 0.9 Bond Info Value of Debt: $680M Pre-tax Cost of debt: 7.3% Tax Rate = 21% Floatation Costs = 1% Other Info Government bond interest rate = 3% Expected return on the S&P 500 = 6%
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
