If Smolinski, Incorporated, were an all-equity company, it would have a beta of 1.20. The...
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If Smolinski, Incorporated, were an allequity company, it would have a beta of The company has a target debtequity ratio of The expected return on the market portfolio is percent and Treasury bills currently yield percent. The company has one bond issue outstanding that matures in years, a par value of $ and a coupon rate of percent. The bond currently sells for $ The corporate tax rate is percent.
a
What is the companys cost of debt? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b What is the companys cost of equity? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
c What is the companys weighted average cost of capital?
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