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Question 2. You are a financial manager of a firm and are asked to assess the cost of capital of your firm. Vou know that

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Question 2. You are a financial manager of a firm and are asked to assess the cost of capital of your firm. Vou know that - Your firm just paid dividend $3 per share - The current stock price is $60 per share - Firm beta is 10% higher than market average - Constant growth rate is 3% - Expected market return is 9% and risk free rate is 2% - There is totally 10 million of outstanding shares of stocks, and for each dollar equity, firm issued $1.5 debt - Cost of borrowing/issuing bond is 5% - Corporate tax rate 30% Using information from the Question 1 What is the market value of stock ? (just keep integer without dollar sign and million, e.g, $100 million >100 ) What is the market value of debt ? just keep integer without dollar sign and million, e.g, $100 million 100) What is the total firm value ? (just keep integer without dollar sign and million, e.g, $100 million 100) To compute WACC, there is E/V and D/E in the formula. What is the value for E/N and D/V ? (use decimal point)

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