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What is the cost of capital (range) for Exploration and Production division using target capital structure ratios as weights (D/V and E/V)? Corporate tax rate
What is the cost of capital (range) for Exploration and Production division using target capital structure ratios as weights (D/V and E/V)? Corporate tax rate to be considered as 2006 tax rate (Exhibit 1) for Midland Energy Resources up to 2 decimal places XXXX%. Risk-free rate as 10-year treasury bond rate and market risk premium as 6%. Select one: O a. 5.0%-5.90% O b. 6.0%-6.50% O c. 12%-12.90% O d. None of the options are correct O e. 8.00%-8.90%
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