Question: PROBLEM 4-6 begin{tabular}{|l|r|r|} hline multicolumn{1}{|c|}{ Given } & & hline multicolumn{1}{|c|}{ Levered equity beta } & 1.25 & Treasure bond yield & 4.28%

$PROBLEM 4-6 \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Given } & & \\ \hline$

PROBLEM 4-6 \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Given } & & \\ \hline \multicolumn{1}{|c|}{ Levered equity beta } & 1.25 & \\ Treasure bond yield & 4.28% & \\ Market risk premium & 2.00% & 5.50% \\ Tax rate & 32.00% & \\ \hline Debt as % of Capital Structure & 25.00% & \\ \hline \end{tabular} Solution a Cost of equity Low ERP High ERP b. WACC with Low ERP

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