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What is the rock co cost of capital

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The Rock Co. has both equity and debt trading in the markets. The market value of the equity is $ 50 million and the market value of debt is $ 6 million. The debt is risk free and the equity has a beta of 1.4. The risk free rate is 3.5% and the market risk premium is 6%. There are no taxes. What is the Rock's Co. cost of capital?

Reference no: EM132459137

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