Mathematics, 12.04.2020 14:18 sarinawhitaker
SIROM Scientific Solutions has $5 million of outstanding equity and $5 million of bank debt. The bank debt costs 4% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 35%.
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SIROM Scientific Solutions has $5 million of outstanding equity and $5 million of bank debt. The ban...
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