Firm weighted average cost of capital

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Suppose a firm has total assets of $1,100,000 and total debt of $300,000. For a firm with a stock beta of 0.8, if the risk free is 2% and the market return is expected to be 12%, what is the cost of equity capital? If the firm has a tax rate of 25% and a bond yield of 6.2%, what is the firm's weighted average cost of capital?

Reference no: EM131777558

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