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You are working as an intern at Coral Gables Products, a privately owned manufacturing company. You got into a discussion with the Chief Financial Officer

You are working as an intern at Coral Gables Products, a privately owned manufacturing company. You got into a discussion with the Chief Financial Officer (CFO) at Coral Gables about weighted average cost of capital calculations. She pointed out that, just as the beta of the assets of a firm equals a weighted average of the betas for the individual assets. The beta of the assets of a firm also equals a weighted average of the betas for the debt, preferred stock, and common stock of a firm: The CFO asks you to estimate the beta for Coral Gables

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