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Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity value of 34% and a tax rate of 25%.

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Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity value of 34% and a tax rate of 25%. The risk free rase is 3% and the market risk premlum is 4.1% What is our cucent expected rale of reham on Tesla equity? A. 6.83% a.7.23\% C. 8.57% 0. 11.24% Suppose that a firm has $500K in long term debt, $25K in preferred stock and $375K in common equity. These are market values. Assume the yield on the long ferm debt is 5.6%, the tax rate is 22%, the dividend on the preferred stock is 4.75% and the firm has a market beta of 1.25 . The risk tree rate is 2.5% and the market risk premlum is 6.31% What is this firm's WACC? A 5.75% B. 6.89% C. 7.21% D. 8.66%

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