What is a firms weighted-average cost of capital if the


What is a firm's weighted-average cost of capital if the stock has a beta of 1.45, Treasury bills yield 5 percent, and the market portfolio offers an expected return of 14 percent? In addition to equity, the firm finances 35 percent of its assets with debt that has a yield to maturity of 9 percent. The firm is in the 35 percent marginal tax bracket.

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Finance Basics: What is a firms weighted-average cost of capital if the
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