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NC has a value of $300M. Debt has a market value of $180M and a yield of...

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Finance

NChas a value of $300M. Debt has a market value of $180M and a yieldof 8%. Equity has a beta of 1.60. The risk-free return is 4% andthe market risk premium is 10%. Tax rate is 40%. Find the weightedaverage cost of capital.

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Transcribed Image Text

NChas a value of $300M. Debt has a market value of $180M and a yieldof 8%. Equity has a beta of 1.60. The risk-free return is 4% andthe market risk premium is 10%. Tax rate is 40%. Find the weightedaverage cost of capital.

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