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Company cost of equity-bien company

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Reference no: EM132516019

Bien Company has a stock market value of $1 billion. It has long term debt of $500 million outstanding at the borrowing cost of 7%. Its stock has a beta of 1.2 and the market return is 10% with a risk-free rate of 4%. Its tax rate is 35%.

-What's company cost of equity?

-What's company after tax cost of debt?

-What's the company's WACC?

Reference no: EM132516019

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