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Using the data given below estimate cost of capital. Beta = 1.2, Rf = 12.15 percent, market premium = 10 percent. The company has stated
Using the data given below estimate cost of capital. Beta = 1.2, Rf = 12.15 percent, market premium = 10 percent. The company has stated that it intends to maintain a debt to value ratio of 0.40. The yield on the companys bonds is 13.5 percent. The companys marginal tax rate is 35 percent.
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