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Calculate the weighted average cost of capital for a company given the following:        Risk-free rate:...

  1. Calculate the weighted average cost of capital for a company given the following:

       Risk-free rate: 3.20%

       The market risk premium: 12.40%

       Common stock’s beta: 1.35

       Company’s debt is in the form of 6-year, 8.6% bonds (semi-annual), face value of $1,000, selling for $946.52.

       The company’s finances its needed capital with 30% debt.

       The company’s marginal tax rate: 30%

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jeff jeffy answered 1 year ago
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