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Company cost of equity-bien company

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Reference no: EM132516178

Bien Company has a stock market value of $1 billion. It has long term debt of $500 million outstanding at the borrowing cost of 7%. Its stock has a beta of 1.2 and the market return is 10% with a risk-free rate of 4%. Its tax rate is 35%.

a) What's company cost of equity?

b) What's company after tax cost of debt?

c) What's the company's WACC?

Reference no: EM132516178

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