The market value of Lays Corporation's equity is 50 million $ and the market value of its
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The market value of Lays Corporation's equity is 50 million $ and the market value of its debt is 27 million §. The current cost of debt for the Co is 3.5%. The beta of the company's common stock is 0.8, the required return for the market is 89 and the risk-free rate is 2%. If we assume no taxes, what is the company's cost of capital (WACC)?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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