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Case 2: Cost of capital. a. Tech produces shoes. It has an enterprise value of 500, debt equal to 200, cost of debt equa
Posted: Wed Jul 06, 2022 6:40 pm
by answerhappygod
- Case 2 Cost Of Capital A Tech Produces Shoes It Has An Enterprise Value Of 500 Debt Equal To 200 Cost Of Debt Equa 1 (77.12 KiB) Viewed 21 times
Case 2: Cost of capital. a. Tech produces shoes. It has an enterprise value of 500, debt equal to 200, cost of debt equal to 5%, beta of equity of 0.8, and the corporate tax is 25%. The risk free rate is 3% and the equity risk premium is 6%. What is Tech Wacc?
Company Grate Paltry Dropa Equity beta 1.13 1.80 3.27 Debt/equity Ratio 0.15 1.06 3.52 Debt beta 0.00 0.15 0.30