The xyz company has an unlevered beta of 125 what is xyzs


The XYZ Company has an unlevered beta of 1.25. The firm currently has no debt, but is considering changing its capital structure to be 30% debt and 70% equity. Its corporate tax rate is 40%, the current risk-free rate is 5% and the market risk premium is 4%. What is XYZ's cost of equity?

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Financial Management: The xyz company has an unlevered beta of 125 what is xyzs
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