Tridents cost of capital market conditions have changed


Question: Trident's Cost of Capital. Market conditions have changed. Maria Gonzalez now estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta at .85, and the company's capital structure is now 30% debt. All other values remain the same. For both the domestic CAPM and ICAPM, calculate the following:

a. Trident's cost of equity

b. Trident's cost of debt

c. Trident's weighted average cost of capital

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Accounting Basics: Tridents cost of capital market conditions have changed
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