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The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $9,963 Average borrowing rate for debt 10.2% Common Equity:
The following data pertains to Xena Corp.
| Xena Corp. | |
|---|---|
| Total Assets | $21,249 |
| Interest-Bearing Debt (market value) | $9,963 |
| Average borrowing rate for debt | 10.2% |
| Common Equity: | |
| Book Value | $5,535 |
| Market Value | $23,247 |
| Marginal Income Tax Rate | 19% |
| Market Beta | 1.64 |
Using the information from the table, calculate Xena's cost of debt capital,
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
