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your company is finance 30% with debt and 70% with equity. The internal rate of return on the companies debt and 7% equity has a
your company is finance 30% with debt and 70% with equity. The internal rate of return on the companies debt and 7% equity has a beta of 1.2. The risk free rate of return is my percent and the market risk premium is 6%. The corporate tax rate is 30%.
a. what is the companies cost of capital or unlevered cost of equity?
b what is the companies weighted average cost of capital wacc?
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