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please answer all parts for a thumbs up!!:) Corcovado Pharmaceuticals. Corcovado Pharmaceuticals cost of debt is 6.70%. The risk-free rate of interest is 3.80%. The

please answer all parts for a thumbs up!!:)
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Corcovado Pharmaceuticals. Corcovado Pharmaceuticals cost of debt is 6.70%. The risk-free rate of interest is 3.80%. The expected return on the market portfolio is 8.40% Corcovado's effective tax rate is 39% Its optimal capital structure is 50% debt and 50% equity a. If Corcovado's beta is estimated at 1 80, what is its weighted average cost of capital? b. If Corcovado's beta is estimated at 1.50, significantly lower because of the continuing profit prospects in the global pharma sector, what is its weighted average cost of capital? m DO al nd a. If Corcovado's beta is estimated at 1 80, what is its weighted average cost of capital? 1% (Round to two decimal places) b. If Corcovado's bata is estimated at 150 significantly lower because of the continuing profit prospects in the global pharma sector, what is its weighted averago cost of capital? 0% (Round to two decimal places) and hst at Cargill's Cost of Capital. Cargill is generally considered to be the largest privately held company in the world Headquartered in Minneapolis, Minnesota, the company has been averaging sales of over $112 billion per year over the past five year period. Although the company does not have publicly traded shares, it is still extremely important for it to calculate its weighted average cost of capital property in order to make rational decisions on new investment proposals. Assuming a risk free rate of 4.30%, an effective tax rate of 48%, and a market risk premium of 4 50%, estimate the weighted average cost of capital first for companies A and B and then make a "guesstimate" of what you believe a comparable WACC would be for Cargill. As shown in the popup window if we take the approach that the beta for Cargill has to pick up all the incremental information the beta would then fall between say 0.80 and 1.00 If the higher degree of international sales was interpreted as increasing risk, beta would be on the higher end, yet being a commodity firm in the current market its beta would rarely surpass 1.0 Thus, an estimate of 0.91 beta for Cargill sounds reasonable Using the CAPM, what is company A's WACC? 0% (Round to two decimal places) Using the CAPM what is company B': WACC? []% (Round to two decimal places) Using the CAPM what is Cargile WACC? 0% (Round to two decimal places) Data table (Click on the icon to import the table into a spreadsheet.) Company sales Company's beta Credit rating Weighted average cost of debt Debt to total capital International sales/Sales Company A Company B $9.5 billion $46 billion 0.81 0.66 AA A 6.870% 7.125% 34% 43% 11% 34% Cargill $112 billion 0.91 AA 6.840% 27% 54% Print Done

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