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What is the company cost of capital

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A company is 40 % financed by risk free debt. the interest rate is 10 %, the expected market risk premium is 8 %, and the beta of the company's common stock is 0.5. What is the company cost of capital ? what is the after tax WACC, assuming that the company pays thax at a 35 % rate ?

Reference no: EM13266449

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