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The market value of the Company's common stock is $30 million, and the market value of its risk-free debt is $10 million

Finance Dec 19, 2020

The market value of the Company's common stock is $30 million, and the market value of its risk-free debt is $10 million. The beta of the company's common stock is 1.45, and the market risk premium is 12 percent. If the Treasury bill rate is 4 percent, what is the company's cost of capital (WACC) assuming no taxes (tax rate=0%)?

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