Question: Assume a firm can be financed with $400 of debt that has a market beta of 0.2 and $600 of equity that has a beta

Assume a firm can be financed with $400 of debt that has a market beta of 0.2 and $600 of equity that has a beta of 2.0.If the risk-free rate is 3.5% and the equity premium is 5%, what is the cost of capital of the overall firm?

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