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The Beta Corporation has an optimal debt ratio of 4 0 percent. Its cost of equity capital is 1 1 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:
Calculate the weightedaverage cost of capital.
Calculate the cost of equity for an equivalent allequity financed firm.
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