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The Casterly Rock Company (CRC) has a beta of 0.9. The market rate of retum is 14% and the risk-free rate is 4%. CRC's debt/equity

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The Casterly Rock Company (CRC) has a beta of 0.9. The market rate of retum is 14% and the risk-free rate is 4%. CRC's debt/equity ratio is 0.5 and the average annual interest rate the company pays on its debt is 6%. The corporation tax rate applicable is 25%. a. What is CRC's cost of equity? b. What is the WACC

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