Question: a) 10.25% b) 11.98% c) 12.12% d) 12.20% e) Unable to answer need more information Can you please show the calculation :) Consider the following
a) 10.25% b) 11.98% c) 12.12% d) 12.20% e) Unable to answer need more information
Can you please show the calculation :)
Consider the following data: 5% 11% Risk free rate Expected return on the market portfolio (including franking premium) Beta for company Cost of debt capital (measured after tax) Effective corporate tax rate 1.2 7% 10% Proportion of equity Proportion of debt 0.8 0.2 Given the data above, which of the following choices are closest to the cost of equity capital
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