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What is the beta of the company

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Question - Suppose a company uses only debt and internal equity to finance its capital budget and uses CAPM to compute its cost of equity. Company estimates that its WACC is 12.6%. The capital structure is 34% debt and the rest is internal equity. Before tax cost of debt is 9% and tax rate is 20%. Data shows that BI rate is 4% and market risk premium is 7%. What is the beta of the company?

Reference no: EM132535822

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