The weighted average cost of capital

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Reference no: EM131048272

Calculate the weighted average cost of capital for Smith Power Products given the following information:

Market Value of Debt $800,000

Market Value of Stock $1,000,000

Current Yield rate of Debt 7.5%

Risk-free Rate 4.0%

Expected Market Return 14.2%

Beta for Smith Power 1.4

Corporate Income Tax Rate 34.0%

Reference no: EM131048272

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