First 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 10 million respectively. First compute the cost of capital of the company?

Reference no: EM131942834

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