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Question 1(a): Using the 2005 accounting and market information for BBS Capital below, determine the weighted average cost of capital (WACC). (15 marks) Information: Debt
Question 1(a): Using the 2005 accounting and market information for BBS Capital below, determine the weighted average cost of capital (WACC). (15 marks) Information: Debt to total capitalisation 30% Cost of debt 7% Tax rate 38% Risk-free rate 3% Market risk-premium 5% Size premium 1.25% Unlevered beta 1
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