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(Solved): 12 The balance sheet (Table 7.2) applies to the RST Company. Table 7.2 Balance sheet Assume the mark ...



12 The balance sheet (Table 7.2) applies to the RST Company. Table 7.2 Balance sheet Assume the market value of the debt and stock are equal to the book values. The expected internal rates of return (IRR) of the different securities to the investors and also the costs to the firm are: Compute the weighted average cost of capital. Assume the corporate income tax rate is 0.4.



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