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Kashmiri's Cost of Capital. Kashmir is the largest and most successful specialty goods company based in Bangalore, India. It has not yet entered the North

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Kashmiri's Cost of Capital. Kashmir is the largest and most successful specialty goods company based in Bangalore, India. It has not yet entered the North American marketplace but is considering establishing both manufacturing and distribution facilities in the United States through a wholly owned subsidiary it has approached two different investment banking advisors, Goldman Sachs and Bank of New York, for estimates of what is costs of capital would be several years into the future when te planned to list is American subsidiary on a US stock exchange Using the assumptions by the two diferent visors in the popup window calculate the prospective costs of debt, equity, and the WACC for Kashmir (U.S.). What is the after tax cost of debt estimated by Goldman Sachs for Kashmir? % (Round to two decimal places) What is the after tax cost of debt estimated by Bank of New York for Kashmir? O(Round to two decimal places) What is the cost of equity estimated by Goldman Sachs for Kashmiri? Os (Round to two decimal places) What is the cost of equity estimated by Bank of New York for Kashmiri? 0% (Round to two decimal places) What is the WACC estimated by Goldman Sachs for Kashmiel? Os Round to two decimal places) What is the WACC estimated by Bank of New York for Kashmi? 0% (Round to two decimal places) Data table (Click on the icon to import the table into a spreadsheet.) 0 Symbol Goldman Sachs 0.90 Bank of New York 0.85 Pjm 24.0% 30.0% om 18.0% 22.0% ki 3.0% 3.0% Assumptions Estimate of correlation between security and market Estimate of standard deviation of Kashmiri's returns Estimate of standard deviation of market's return Risk-free rate of interest Estimate of Kashmiri's cost of debt in U.S. market Estimate of market return, forward-looking Corporate tax rate Proportion of debt Proportion of equity ko 7.5% 7.8% km 9.0% 12.0% DIV 35% 35% 65% 35% 40% 60% EIV Print Done

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