Coffee Stop primarily sels coffee. It recently introduced a premium coffee-flavoured liqueur. Suppose the firm faces a t

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Coffee Stop primarily sels coffee. It recently introduced a premium coffee-flavoured liqueur. Suppose the firm faces a t

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Coffee Stop Primarily Sels Coffee It Recently Introduced A Premium Coffee Flavoured Liqueur Suppose The Firm Faces A T 1
Coffee Stop Primarily Sels Coffee It Recently Introduced A Premium Coffee Flavoured Liqueur Suppose The Firm Faces A T 1 (15.47 KiB) Viewed 28 times
Coffee Stop primarily sels coffee. It recently introduced a premium coffee-flavoured liqueur. Suppose the firm faces a tax rate of 40% and collects the following Information. If it plans to finance 13% of the new liqueur focused division with debt and the rest with equity, what WACC should it use for its liqueur division? Assume a cost of debt of 5,3%, a risk-free rate of 2.4% and a risk premium of 5.3% Beta % Equity % Debt CoffeeStop 0.61 94% 6% BF Liqueurs 0.24 87% 13% CHI The weighted average cost of capital is OK (Round to two decimal places)
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