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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 fate is 3% and the market risk premim is Suppose that Tesla acquires Fivian and their new debt to equity ratio is 75%. What is Tesla's new expected rehum? A. 11.22+4 8. 13.20% c. 1522% b. 17.01% QUESTION 10 How should the cost of debt copital be calculated? A. uning the CAPM B. as the yield to maturity on each type of debt times one minus the statitcry tax rage C. as the yield to maturity on each type of debt umes one plus the stalutory tax rate D as the coupon rate on each type of seot times one finus the statutory lax rate

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