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QUESTION
Calculate the weighted average cost of capital for Allied Power Products given the following information: Market Value of Debt $800,000 Market Value...
Calculate the weighted average cost of capital for Allied Power Products given the following information:
Market Value of Debt
$800,000
Market Value of Stock
$1,000,000
Current Yield rate of Debt
7.5%
Risk-free Rate
4.0%
Expected Market Return
14.2%
Beta for Allied Power
1.4
Corporate Income Tax Rate
34.0%
