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please help - THANK YOU! Your firm is considering acquiring a small company. The equity beta of the small company is 1.27 and the small
please help - THANK YOU!
Your firm is considering acquiring a small company. The equity beta of the small company is 1.27 and the small cap premium is 3.81%. The expected return on the market portfolio is 13.20% and the risk-free rate is 3.77%. The target total debt/equity ratio of the firm you plan to acquire is 30% and its pre-tax cost of debt is 8.18%. If the corporate tax rate is 28%, calculate the weighted average cost of capital that you should use to evaluate the target firm. 16.4% 15.8% 19.6% 17.3% Step by Step Solution
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