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Please answer this if:

Please answer this if: a) tax rate is 30%
b) tax rate is 40%
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Finance-8097894.xls

Question: if: a) tax rate is 30%
b) tax rate is 40%
Solution: a) Beta
Rf
Rm
E( R) =
E (R )= 0.95
3%
6%
Rf + (Rm- Rf)*beta
5.85% The cost of capital = 5.85% b) WACC = Weight of debt * cost of debt...

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