Find the division's market risk and cost of capital based on the CAPM, given these followings inputs:
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Question:
Find the division's market risk and cost of capital based on the CAPM, given these followings inputs:
•Target debt ratio = 10%.
.Kd= 12%.
•KRF = 7%.
•Tax rate = 40%.
•beta Division = 1.7.
•Market risk premium = 6%.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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