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: Riskfree rate: Market risk premium: Company beta: Debt coupon rate: paid annually Years to maturity on debt: years Calculate: a Cost of equity using CAPM The cost of equity using CAPM is Format: round to one decimal point, eg b Pretax cost of debt using YTM The pretax cost of debt using YTM is Format: round to one decimal point, eg c Aftertax cost of debt The aftertax cost of debt is Format: round to one decimal point, eg d WACC
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