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Automatic Data Processing has a beta of 2.67 and the expectedmarket return is 0.16. If Treasury bills are currently yielding0.03 percent, find the cost of capital for Automatic DataProcessing (round your answers).none of the answers is correct39.9%27.5%37.7%34.1%Calculate WACC given the following information (BT means beforetax).TotalValue of Common Stocks (S)$1,000,000Costof Equity (common stocks, Ks)22%TotalValue of Preferred Stocks (P)$200,000Costof Preferred stock (Kp)12%TotalValue of Debt (D)$300,000BeforeTax Cost of Debt (BT Kd)9%Taxrate (T)30%none of the answers is correct17.53%9.86%20.10%19.72%
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