Swollmart is a large conglomerate firm. Its stock has a beta of 0 . 8 , the

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Swollmart is a large conglomerate firm. Its stock has a beta of

0.8,

the Treasury bill rate is

4.5 %

and the expected return to the market portfolio is

10 % .

Swollmart's most recent bond issue had a yield to maturity of

8 %

and the marginal tax rate is

20 % .

Finally, Swollmart has a debt

/

equity ratio

(

/

)

2 .

What is their weighted average cost of capital?

Posted Date: May 18, 2024 08:00 PM

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