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Q#3 -A The ASF company cost of common equity is 16 % its before tax cost of debts is 13% and its marginal tax rate
Q#3 -A The ASF company cost of common equity is 16 % its before tax cost of debts is 13% and its marginal tax rate is 40 % the stock sells at book value using the following balance sheet calculate ASF after tax weighted average cost of capital.
Assets liabilities and equity
Cash ?
A/c receivable ?
Inventories ? long term debts 1,152
Plant and equipment ? Equity ?
Total assets 2,880 Liabilities and equity ?
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