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Refer to the information below for Cemex for Questions 1 and 2

 

1.What is the firm's cost of equity?

2.What is the firm's WACC?

Transcribed Image Text:

Costs of Capital: Cemex Risk-free rate Credit premium Corporate income tax rate Percent debt 6.000% 3.000% 35.000% 50.0% Cemex beta Equity risk premium Percent equity 1.50 8.000% 50.0% Costs of Capital: Cemex Risk-free rate Credit premium Corporate income tax rate Percent debt 6.000% 3.000% 35.000% 50.0% Cemex beta Equity risk premium Percent equity 1.50 8.000% 50.0%

Answer rating: 100% (QA)

Calculation of Cemexs cost of equity using the Capital Asset ... View the full answer