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Task 5: Marks) (6 Prime Electronics (SAOG) started its business operations in the year 2010,...

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Accounting

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Task 5: Marks) (6 Prime Electronics (SAOG) started its business operations in the year 2010, during the year 2020 it is considering expanding its current operations, and you are asked to estimate the WACC to be used for this project. Prime Electronics (SAOG)'s outstanding stock is valued at OMR (student number), while its debt has a market value of OMR (30 % of Student number) Prime Electronics (SAOG)'s stock has a beta of 1.65 and its debt is risk free. Prime Electronics (SAOG)'s marginal tax rate is 25%. The risk-free rate is 4% and the required return on the market portfolio is 12%. Calculate, the beta of the assets of Prime Electronics (SAOG)? Calculate and comment on the calculated value of WACC

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