Compute the cost of capital of the company

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Net profit margin, ATO and financial leverage are 08, 6 and 2 respectively The dividend payout ratio is .4. The risk free rate, market rate and bheta unlevered is.07, .13 and 2 respectively. The tax rate debt and equity are 40%, $20 million and $10million respectively. First, compute the cost of capital of the company?

Reference no: EM131942827

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