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Use this to answer the next 3 questions. You're given a firm to analyze with 78.43% equity and 21.57% debt. The firm has a beta

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Use this to answer the next 3 questions. You're given a firm to analyze with 78.43% equity and 21.57% debt. The firm has a beta of 1.15 , the risk-free rate is 5% and the market risk premium is 9%. In addition, its outstanding debt has a 15 year maturity, is selling at 110 and a 9% coupon. The marginal tax rate is 40%. 41. What is the cost of equity? (a.) 15.35 .05+1.15(9x).05+1.15(04103) 6.16.33e.14.75d.15.05e.15.00 .05+1.15(A,03) 42. What is the after tax cost of debt? (11) 4.71% b. 5.71% c. 3.88% d. 4.27% e. 5.12% 43. What is the WACC of the firm? (a) 13.06% b. 15.35% e. 4.712% d. 14.00% e. T 'm so lost

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