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Calculate Southfield Corporation weighted average cost

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Question - Use the following information to calculate Southfield Corporation's weighted average cost of capital:

The risk free interest rate is 4%.

The expected return on the market is 9.6%.

The proportion of debt in the capital structure is 54%.

Southfield Corporation's beta is 1.2

Southfield's marginal income tax rate is 35%.

The company's average borrowing rate is 8%.

Reference no: EM132944046

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