Compute the book value of common stock

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Reference no: EM131978228

1. What is the formula to compute the book value of common stock?

2. If you face a 35% tax rate, have a cost of equity of 16%, a pretax cost of debt 9% and a target capital structure of 40/60, then what is your weighted average cost of capital

3. A stock has an expected return of 11%, it’s beta is 1.5, and the MRP is 5.5%. What must the risk free return.

Reference no: EM131978228

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