What is the cost of equity of this firm

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Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm’s bonds is 7.6 percent and the debt-equity ratio is .45. What is the cost of equity of this firm? What is the WACC if the tax rate is 34 percent?

Reference no: EM131446803

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