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Question 25 1 pts Railsplitters, Inc. has the following information for its capital structure: Instrument: Amount Issued Current Price YTM Bond A $500 Million 100.82
Question 25 1 pts Railsplitters, Inc. has the following information for its capital structure: Instrument: Amount Issued Current Price YTM Bond A $500 Million 100.82 4.36% Bond B $850 Million 101.36 4.49% Common Stock 42.5 Million Shares $28.21 per share E(R ) Market = 8.65% B = 1.31 Expected Dividend = $1.95 Rf = 2.25% Growth Rate = 2.75% Given this information, what is the estimated cost of equity for the firm using CAPM
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