Calculate sea ready weighted average

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Sea Ready Transport, Ltd., operates a fleet of oil and chemical tankers. A security analyst's Report issued by a national brokerage firm indicates that debt yielding 11% compromises 40% of Sea Ready's overall capital structure. Calculate Sea Ready's component cost of equity using the capital asset pricing model (CAPM):Assuming a 40% tax rate, calculate Sea Ready's weighted average cost of capital (WACC).

Reference no: EM131395782

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