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Reinford Group is considering several projects to invest in and needs to calculate the appropriate cost of capital for the projects. The company currently has

Reinford Group is considering several projects to invest in and needs to calculate the appropriate cost of capital for the projects. The company currently has a financing mix of 40% debt and 60% equity and expects to use a similar mix to finance the potential projects.

If the companys beta is .87, the risk-free rate is .025, and the market risk premium is .054, what is Reinfords cost of equity?

The yield to maturity (YTM) on currently outstanding Reinford debt is .048 and the marginal tax rate for Reinford is expected to be 21%.

What is Reinfords cost of equity and after-tax cost of debt?

What is Reinfords WACC?

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