Assume that the beta of the firms equity is 15 the


Suppose a firm is financed with 70% equity and 30% risk-free debt. Assume that the beta of the firm's equity is 1.5, the risk-free rate is 4%, and the expected return on the market is 11%. Compute the company's cost of capital.

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Finance Basics: Assume that the beta of the firms equity is 15 the
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