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(Lecture 10 - Asset Cost of Capital) Market value of Book value of debt to market debt to book Risk free Expected rate market

(Lecture 10 - Asset Cost of Capital) Market value of Book value of debt to market debt to book Risk free Expected rate market risk value of equity value of equity Equity Debt premium Company XYZ Inc. ratio 0.3 ratio 0.5 Beta Beta 1.8 0.5 1% 6% Assuming XYZ Inc. faces a tax rate of 21%. The asset beta for XYZ Inc. is Instruction: Type ONLY your numerical answer, No comma sign. Round to the nearest one decimal place. E.g., if your answer is 18.76 then input 18.8.

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