Archimedes Levers is financed by a mixture of debt and equity. Complete the following: (Enter your...

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Archimedes Levers is financed by a mixture of debt and equity. Complete the following: (Enter your le and A answers as a per

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Answer 1

Answer #1

Be=1.05
rf=3%
rm=19%
re=3%+1.05*(19%-3%)=19.8000%
rd=6%
bd=(6%-3%)/(19%-3%)=0.1875
ra=19.80%*0.35+6%*0.65=10.8300%
ba=(10.8300%-3%)/(19%-3%)=0.4894

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Answer 2

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