Business, 18.11.2020 16:50 natenate32

The following data pertains to Michalko Corp. Assuming that the risk-free rate is 4.2% and the market risk premium is 6.2%, calculate Michalko's weighted-average cost of capital. Michalko Corp.

Total Assets $14,680
Interest-Bearing Debt $19,100
Average borrowing rate for debt 11%
Common Equity:
Book Value $5,120
Market Value $25,700
Marginal Income Tax Rate 40%
Market Equity Beta 1.25

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The following data pertains to Michalko Corp. Assuming that the risk-free rate is 4.2% and the marke...

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