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What is reggie after-tax cost of debt financing

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Reference no: EM133111533

Question - Reggie's BBQ, Seafood, Haircare, & Tire Emporium, Inc. has a beta on Yahoo finance is 1.76. The risk-free rate is .60%, and the market risk premium is 7%. The yield on the company's debt is 3.75%, and the firm has a 40% marginal tax rate.

What is Reggie's cost of equity capital?

What is Reggie's after-tax cost of debt financing?

If the debt-asset ratio is .7, and Reggie's has no preferred stock in its capital structure, what is Reggie's cost of capital?

Reference no: EM133111533

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