Question: Slater Co. is a U.S.-based MNC that finances all operations with debt and equity. It borrows U.S. funds at an interest rate of 11 percent

Slater Co. is a U.S.-based MNC that finances all operations with debt and equity. It borrows U.S. funds at an interest rate of 11 percent per year. The long-term risk-free rate in the U.S. is 7 percent. The stock market return in the U.S. is expected to be 15 percent annually. Slater's beta is 1.4. Its target is 20 percent debt and 80 percent equity. Slater Co. is subject to a 30% corporate tax rate. Estimate the to Slater Co.

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