Question: Please do by hand. Company estimates that its beta is 2. The capital structure is 50% debt and 50% equity. WACC of the company is
Please do by hand. Company estimates that its beta is 2. The capital structure is 50% debt and 50% equity. WACC of the company is 8 % and the tax rate is 30%. Risk-free rate is rRF = 6% and the market return is rm=8%: What is the before-tax cost of debts?
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