Business, 10.11.2019 03:31 hjohnere1

Print nextel corporation (s) has $25.6 billion in total debt (which approximates its market value.) each year this debt costs the company about $1.5 billion in interest expense. the company's market capitalization approximates $17.2 billion, its market beta is estimated 2.12, and its marginal tax rate is 35%. assume that the risk-free rate equals 5.4% and the market premium equals 5.8%. rounding instructions: do not round until your final answers. round answers to one decimal place.
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(a) estimate sprint nextel's cost of debt capital.
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(c) estimate sprint nextel's cost of equity capital.
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(d) using your rounded answers from (a) and (c) above, estimate sprint nextel's weighted average cost of capital.
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Print nextel corporation (s) has $25.6 billion in total debt (which approximates its market value.)...

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