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The Beta Corporation has an optimal debt ratio of 4 0 percent. Its cost of equity capital is 1 2 percent, and its before -
The Beta Corporation has an optimal debt ratio of percent. Its cost of equity capital is percent, and
its beforetax borrowing rate is percent. Given a marginal tax rate of percent.
Required:
a Calculate the weightedaverage cost of capital.
b Calculate the cost of equity for an equivalent allequity financed firm.
Complete this question by entering your answers in the tabs below.
Required A
Calculate the weightedaverage cost of capital.
Note: Do not round intermediate calculations. Round your answer as a percent rounded to decimal places.
Weightedaverage cost of capital
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