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Question 3: (4 pts) Ali Baba & Co. is a small company engaged in the hospitality industry. The cost of debt capital is 10%; EBIT

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Question 3: (4 pts) Ali Baba & Co. is a small company engaged in the hospitality industry. The cost of debt capital is 10%; EBIT is $150; the amount of debt is $500; the cost of unlevered debt is 20%; and the tax rate is 34%. a. Calculate the value of Ali Baba & Co's equity. (show your calculations in detail) b. Calculate the cost of equity capital for Ali Baba & Co. C. Calculate the WACC for Ali Baba & Co. d. What do you conclude

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