Question: Using the information from the ABC Corporation above, plus: - Risk - free rate: ( 3 % ) - Market risk premium:

Using the information from the ABC Corporation above, plus: - Risk-free rate: \(3\%\)- Market risk premium: \(6\%\)- Company beta: 1.2- Debt coupon rate: \(5\%\)(paid annually)- Years to maturity on debt: 10 years Calculate: a) Cost of equity using CAPM The cost of equity using CAPM is \%(Format: round to one decimal point, e.g.6.3) b) Pre-tax cost of debt using YTM The pre-tax cost of debt using YTM is \%(Format: round to one decimal point, e.g.6.3) c) After-tax cost of debt The after-tax cost of debt is \%(Format: round to one decimal point, e.g.6.3) d) WACC
Using the information from the ABC Corporation

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