Question: Data: Estimate cost of capital using the following data: Beta 2.1 Current 10 year US Treasury 3.8% Expected market return 12% Tax rate 35% Current

  1. Data:
  2. Estimate cost of capital using the following data:
    1. Beta 2.1
    2. Current 10 year US Treasury 3.8%
    3. Expected market return 12%
    4. Tax rate 35%
    5. Current yield on debt 7.3%
    6. Market value of equity - $1, 400,000
    7. Market value of debt - $600,000

Question: Discuss financial statement analysis focusing on the benefits and challenges of ratio analysis and common-size financial statements

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