Compute the WACC of a hypothetical firm

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Question - Compute the WACC of a hypothetical firm, if you know the return in the market, the risk-free rate, the cost of debt and unlevered bheta are .12, .02, .08 and 1, and the weights of debt and equity are 40% and 60%, respectively domestically. In the foreign nation, respective values are .14, .04, .1, 1.3, 70% and 30%. Furthermore, the weights of debt of the foreign project is .5 and the weight of equity is 50%.  Additionally, the % of debt borrowed from the US is 20 % of a total weight and 30 % from the foreign country.

Reference no: EM133089674

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