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Calculate the equity cost of capital

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Reference no: EM133075540

Question - The return on equity for MMM corporation is 10% for 2017 and profits after taxes are $40,000. The number of shares outstanding is 100,000 and the market price of the share is $8. Total liabilities for the company are $600,000. Please answer the following:

a) Calculate the equity cost of capital.

b) Calculate the debt to assets ratio.

Reference no: EM133075540

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