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You work as a financial analyst for Tesla. You calculate the following assumptions for Tesla: Weight of equity = 55% Weight of debt = 45%
You work as a financial analyst for Tesla. You calculate the following assumptions for Tesla:
- Weight of equity = 55%
- Weight of debt = 45%
- Tax rate = 18%
- Coupon rate = 4.5%
- Yield to maturity = 5.5%
- Beta = 1.2
- Expected market return = 8.3%
- Risk-free rate = 1.8%
Given these assumptions, what is Tesla's before-tax cost of debt [ Select ] ["1.8%", "45.0%", "4.5%", "5.5%"] and cost of equity [ Select ] ["1.8%", "8.3%", "55.0%", "9.6%"] ?
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