NC has a value of $300M. Debt has a market value of $180M and a yield of
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Question:
NC has a value of $300M. Debt has a market value of $180M and a yield of 8%. Equity has a beta of 1.60. The risk-free return is 4% and the market risk premium is 10%. Tax rate is 40%. Find the weighted average cost of capital.
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