A company is 46 financed by risk free debt the interest, Financial Econometrics

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A company is 46 financed by risk free debt the interest

A company is 46% financed by risk free debt. The interest rate is 11%, the expected market risk premium is 9%, and the beta of the company's common stock is 0.56.

a. What is the company cost of capital?

b. What is the after tax WACC, assuming that the company pays tax at a 40% rate?

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Financial Econometrics: A company is 46 financed by risk free debt the interest

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Financial Econometrics: A company is 46 financed by risk free debt the interest

Reference No:- TGS0665971

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Financial Econometrics: A company is 46 financed by risk free debt the interest

Reference No:- TGS0665971

Recent Questions Asked Financial Econometrics

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