PRIN.OF CORP.FINANCE-CONNECT ACCESS
PRIN.OF CORP.FINANCE-CONNECT ACCESS
13th Edition
ISBN: 2810023360757
Author: BREALEY
Publisher: MCG
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Chapter 17, Problem 17PS

MM proposition 2* Archimedes Levers is financed by a mixture of debt and equity. You have the following information about its cost of capital:

rE = _____

βE = 1.5

rf = 10%

rD = 12%

βD = _____

rm = 18%

rA = _____

βA = _____

D/V = 0.5

Can you fill in the blanks?

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