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Business, 20.12.2019 04:31 mauri66

Acetate, inc., has equity with a market value of $22 million and debt with a market value of $11 million. the cost of debt is 8 percent per year. treasury bills that mature in one year yield 4 percent per year, and the expected return on the market portfolio is 10 percent. the beta of acetate’s equity is 1.05. the firm pays no taxes.

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