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A stock has an expected return of 15.8 percent, the risk-free rate is 6.3 percent,...

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Accounting

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A stock has an expected return of 15.8 percent, the risk-free rate is 6.3 percent, and the market risk premium is 7.5 percent. What must the beta of this stock be? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. Ninecent Corporation has a target capital structure of 50 percent common stock, 10 percent preferred stock, and 40 percent debt its cost of equity is 8 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent. The relevant tax rate is 38 percent. a. What is the company's WACC? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16. b. What is the aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16

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