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.

Please to assist with the solution to this problem. Thank you. b)

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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