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Estimate du pont cost of equity

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Question - In 1972, bond yields and inflation were approximately as follows:  

Long-term Treasuries: 6.2%

AAA Corporate Bonds: 7.2% BBB Corporate Bonds: 7.8%

Inflation rate (CPI): 3.2% Assume du Pont's credit rating in 1972 was "A" as rated by S&P.

Estimate du Pont's cost of equity, cost of debt & WACC. Outline your methodology and assumptions in determining each of these measures.

Reference no: EM133074411

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