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Calculate aristotle and company weighted average cost

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Problem 1: Aristotle & Company has a target debt-to-equity ratio of 0.4 and a beta of 0.7 Aristotle & Company's pre-tax cost of debt is 9 and the 10-year Treasury currently yields 4.4%. The tax rate is 40% and you estimate the market risk premium is 6.2%. Calculate Aristotle & Company's weighted average cost of capital (WACC).

Reference no: EM132936931

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