What is the company wacc for abc corporation

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Problem 1: The Nixon Corporation's common stock has a beta of 1.8. If the risk-free rate is 4.9 percent and the expected return on the market is 11 percent, what is the company's cost of equity capital?

Problem 2: ABC Corporation has a target capital structure of 75 percent common stock and 25 percent debt. Its cost of equity is 12.1 percent, and the cost of debt is 6.7 percent. The relevant tax rate is 25 percent. What is the company's WACC?

Problem 3: A stock has a beta of 1.02, the expected return on the market is 12 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be?

Problem 4: A stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent. What must the beta of this stock be?

Reference no: EM132962635

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