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Plutonic Corporation has a debt ratio of 30%, a cost of debt (Rd ) of 6.00%, and an equity beta () of 1.38. Assuming a
Plutonic Corporation has a debt ratio of 30%, a cost of debt (Rd ) of 6.00%, and an equity beta () of 1.38. Assuming a corporate tax rate (Rt) of 35%, a risk-free rate (Rf) of 1.5%, and an EMRP of 5.0%, what is Plutonics Unlevered Cost of Capital (U L )? What is Plutonics WACC? What is the upside limit of Plutonics WACC? Please provide a specific figure. (WACC, UNLEVERED COST OF CAPITAL, the two biggest determinants of cost of equity, determined by CAPM formula, are risk free rate and beta)
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