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The Beta Corporation has an optimal debt ratio of 40 percent . Its cost of equity capital is 1.5 percent and its before - tax
The Beta Corporation has an optimal debt ratio of 40 percent . Its cost of equity capital is 1.5 percent and its before - tax borrowing rate is 1 percent . Given a marginal tax rate of 35 percent calculate
a ) the weighted - average cost of capital and
b ) the cost of equity for an equivalent all - equity financed firm .
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
