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What is the firm weighted average cost of capital

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Question - The market value of XYZ Corporation's common stock is $40 million and the market value of its risk-free debt is $60 million. The beta of the company's common stock is 0.8 and the expected market risk premium is 10%. If the Treasury bill rate is 6$, what is the firm's weighted average cost of capital?

Reference no: EM133139751

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