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QUESTIONS Pandit Swan Inc. (a major weapons manufacturer) has a capital structure with $6 billion in equity and $4 billion in debt. Its tax rate

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QUESTIONS Pandit Swan Inc. (a major weapons manufacturer) has a capital structure with $6 billion in equity and $4 billion in debt. Its tax rate is.30; its levered beta is 1.8: the riskless rate is .02 and the expected equity risk premium is .06 What is the cost of equity for a firm in this industry that has no debt. 1 po 8.36% 9.3896 8.7596 10.0096 8.2496 QUESTION 6 Pandit Swan Inc. (a major weapons manufacturer) has a capital structure with $6 billion in equity and $4 billion in debt. Its tax rate is.30; its levered beta is 1.8: the riskless rate is .02 and the expected equity risk premium is .06 What is the levered beta for a firm in this industry that has a capital structure with equal parts debt and equity? 2.60 2.19 1.80 02.09 O 1.70 Save ANA i Sme All Answers to save all answers

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