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Unformatted text preview: Cost of Capital is Minimal rate of return acceptable on new projects Opportunity cost of capital WAAC: Weighted Average Cost of Capital =kd(1-T)+ws*ke Ks are proportion or percent T is tax rate Assistant's Mistakes Used last years interest expense CAPM Ke 9.8% Rk 5.74 b 0.69 Mp 5.9% DDM not good since dividends stay flat Market value of equity 42.09$x271=11410ish 10/90 D/E...
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