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What is the weighted average costs of capital

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Portobello Inc. has debt which irredeemable and pays interest of $5 [gross] per $100 [nominal of debt]. The debt has a balance sheet value of $24m, but is trading in the open market at $65.50.

The firm's equity share capital of which there are 12m shares, has paid a fixed dividend of $0.75 per annum since inception and is not scheduled to change this. The firm is relatively risky in terms of risk and the equity has a Beta of 1.82. The Risk-Free Rate is currently 1% per annum and the equity market returns are expected to 9% per annum.

The corporation taxation rate within the US economic zone is currently 21%.

c(WACC) before tax and after-tax?

All working is helpful! Thank-you to whoever can help me out i will leave a lovely review:)

Reference no: EM133005065

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