Suppose a company estimates a 12% WACC based on 75% debt and 25% common equity. If the

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Suppose a company estimates a 12% WACC based on 75% debt and 25% common equity. If the pre-tax cost of debt is 12.5 %, tax rate is 20%. treasury yield is 6% and market risk premium is 8%, then what is the company's beta?

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Dec 12, 2018 01:55 AM

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Suppose a company estimates a 12% WACC based on 75% debt and 25% common equity. If the

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Cost of debt 125 1 Tax Rate 125 120 10 Let the cost of equity be x W... View the full answer

Fundamentals of Corporate Finance

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