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What is the weighted-average cost of capital for the following firm that exists in a tax-free environment? Market Value of Debt = $30,000 Number of
What is the weighted-average cost of capital for the following firm that exists in a tax-free environment?
Market Value of Debt = $30,000
Number of Shares = 6,000
Share Price = $15.60
Beta = 1.5
Risk-free rate = 4%
Market Risk Premium = 4%
Interest Rate on Debt = 8% (annualised)
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