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The Dakota Biotech Corporation wants to determine its after-tax cost of capital. The companys debt-equity ratio is 0.92. The before-tax cost of debt is 6.75%
The Dakota Biotech Corporation wants to determine its after-tax cost of capital. The companys debt-equity ratio is 0.92. The before-tax cost of debt is 6.75% with a 30% tax rate. The return on Treasury Bills currently is 8% and the cost of equity is 14.5%.
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