A company is 30 financed by risk-free debt the interest, Finance Basics

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A company is 30 financed by risk-free debt the interest

A company is 30% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company's common stock is 0.69.

a. What is the company cost of capital?
b. What is the after-tax WACC, assuming that the company pays tax at a 30% rate?

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Finance Basics: A company is 30 financed by risk-free debt the interest

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Finance Basics: A company is 30 financed by risk-free debt the interest

Reference No:- TGS0594591

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Reference No:- TGS0594591

Recent Questions Asked Finance Basics

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