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Question 10 [2 points] You are reviewing a valuation spreadsheet on Leopold Limited prepared by an analyst and note that the following assumptions were used:
Question 10 [2 points] You are reviewing a valuation spreadsheet on Leopold Limited prepared by an analyst and note that the following assumptions were used: Risk free rate (Rf) = 3% Equity Risk Premium = 5% Tax Rate = 25% Pretax Cost of Debt = 6.0% Cost of Equity =12% WACC = 9.9% Market capitalization of Leopold = $180 million a. What is the Beta used by the analyst to calculate Leopold's cost of equity? [1 point] b. What is the market value of debt? [1 point]
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