Using the following, data find the weighted average cost of capital. Risk Free Rate.............................................4% Market Return...........................................12% Beta

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Using the following, data find the weighted average cost of capital.

Risk Free Rate.............................................4%

Market Return...........................................12%

Beta of Equity.............................................1.1

Cost of Debt ..........................................5.90%

Corporate Tax Rate ...................................40%

Debt Value .....................................$2,000,000

Equity Value .................................$30,000,000

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Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: May 06, 2013 05:49 AM

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Using the following, data find the weighted average cost of capital. Risk Free Rate.............................................4% Market Return...........................................12% Beta

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