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What is Nodebt's weighted-average cost of capital (WACC)?

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Problem 11. WACC. Nodebt, Inc., is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 5 percent and the market risk premium is expected to be 10 percent. What is Nodebt's asset beta? What is Nodebt's weighted-average cost of capital? The firm is exempt from paying taxes.

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This solution provides the formula and calculations for the WACC of Nodebt Inc.

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