What is baker-hughes weighted average cost of capital

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Baker-Hughes. is capitalized with 2/3 equity and 1/3 debt. The pre-tax required rate of return for these bonds is 8.5%. The stock has a beta of 1.1. The U.S. Treasury bill is yielding 4% and the market risk premium is 8%. Tax rate is 35%. What is Baker-Hughes' weighted average cost of capital?

Reference no: EM132037303

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