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What is risk free rate of firm with beta of one point five

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Reference no: EM132987392

Problem 1: The appropriate WACC of a firm is 6.77%. With market return of 8%, prevailing credit spread or debt margin of 3%, tax rate of 30% and equity ratio of 30%, what is the risk free rate of the firm with beta of 1.5?

a. 4%
b. 7%
c. 5%
d. 6%

Reference no: EM132987392

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