a firm has an asset base with a market value of 5.3 million. ITs debt is worth 2.5 million. if 0.2 million is paid in interest annually and the shareholders expect a 16% annual return, what is the weighted average cost of capital assuming no corporate taxes? what is the WACC if corporate taxes are 45%?

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A: Expected rate of return=10%Common stock and retained earnings=15 millionLoan=4millionAverage rate…

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Q: 20f

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A:

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A:

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A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

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A: Information povided

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A: Unlevered firm is that firm or company, which does not take debt for the funding purpose. Levered…