Calculate disney cost of equity capital using the capm

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Reference no: EM132695362

Problem 1: Compute the weights for Disney's equity and debt based on the market value of equity and Disney's market value of debt, computed .

Problem 2: Calculate Disney's cost of equity capital using the CAPM, the risk-free rate you collected in step 1, and a market risk premium of 5%.

Problem 3: Assuming that Disney has a tax rate of 35%, calculate its effective cost of debt capital.

Reference no: EM132695362

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