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jesshalavi jesshalavi
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2 months ago
Toronto Skaters Company has a D/E ratio of 1.5. The company has 1,000 shares outstanding and a beta of 1.2. The risk-free rate is 3% and the market risk premium is 5%. The company has 10-year debt with a face value of $1 million and annual coupons of 4%. The debt is currently trading at 105. The tax rate is 35%. Calculate the weighted average cost of capital for Toronto Skaters Company.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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SaharakSaharak
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jesshalavi Author
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Thanks
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Thank you, thank you, thank you!
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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