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The market value of a company's equity is $30 million and the market value of its risk-free debt is $10 million. The beta of the
The market value of a company's equity is $30 million and the market value of its risk-free debt is $10 million. The beta of the common stock is 1.5; market risk premium is 8%. If the Treasury bill rate is 4%, what is the companys cost of capital? (assume no taxes)
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