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My online exam is going on plz hurry Question 3 (3.5+ 1.5 + 1 = 6 marks) a) Explain when the weighted average cost of

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Question 3 (3.5+ 1.5 + 1 = 6 marks) a) Explain when the weighted average cost of capital is the appropriate rate to use for a discount rate of a project. Describe what happens if a company uses its WACC to make accept/reject decision for all types of projects. b) Rev Ltd bonds have 10% annual coupon, $1,000 face value and 8 years to mature. The bonds are currently selling for $95. Calculate the company's cost of debt. (Show answer as a percentage correct to 2 decimal points) c) Rev Ltd ordinary shares have a beta of 1.42. If risk free rate is 3% and market risk premium is 5%, calculate company's cost of equity. (Show answer as a percentage correct to 2 decimal places)

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