CoffeeStop primar y sells coffee. It recently introduced a premium coffee flavored liquor BF Liquors...
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Finance
CoffeeStop primar y sells coffee. It recently introduced a premium coffee flavored liquor BF Liquors Suppose the firm faces a tax rate o 38% and collects the following information. I t plans to finance 14% of the new liquor focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 5.4% a sk-free rate of 3.2%, and a market risk premium of 5.4%. Beta 0.61 0.24 %Equity 96% 86% %Debt 4% 14% CoffeeStop BF Liquors The weighted average cost of capital is 1% (Round to two decimal places.)
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