Question: Please to assist with the solution to this problem. Thank you. b) Abkon Co. is a Swedish firm anc. borrows funds at an interest rate
Please to assist with the solution to this problem. Thank you.

b) Abkon Co. is a Swedish firm anc. borrows funds at an interest rate of 10% per year. Its beta is 1.0 and the long-term annualized risk-free rate in the Sweden is 6%. The stock market return in Sweden is expected to be 15% annually. Abkon Co. target capital structure is 45% debt and it is subject to a 30% corporate tax rate. Estimate the company's cost of capital
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