Analyze nestle csr initiative plan focuses on society issues
This is a CSR project, and choose to nestle as our company Note: Please give answer on mentioned words (must add intext citation) and required
Estimate the cost of capital for the ?rm
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Assignment ID: FG133121124
XYZ Inc. is an all-equity funded publicly traded ?rm, with 100 million shares outstanding, trading at $10 per share. Its current cost of capital is 7.5%. The company plans to borrow $800 million at an interest rate of 7.5% and buy back shares. Assume that the risk-free rate is 3%, the market risk premium is 6%, and the marginal tax rate for all companies is 40%. Estimate the cost of capital for the ?rm after the share buyback.
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