Question: 2] Using the data provided in the ease, estimate Lex's cost of equity under its future target capital structure for the consolidated company. a) 1What

2] Using the data provided in the ease, estimate Lex's cost

2] Using the data provided in the ease, estimate Lex's cost of equity under its future target capital structure for the consolidated company. a) 1What risk-free rate did you use to obtain your estimate? Please explain. b) What risk premium did you use? How did you obtain this estimate? (1) Is your estimate of LeX's cost of equity appropriate as a discount rate for Lex's total operating cash ows? Why or why not

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