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1. Based on the information given below, calculate the WACC of the company: 11.065%. Its capital structure consists of 45 percent debt and 55
1. Based on the information given below, calculate the WACC of the company: 11.065%. Its capital structure consists of 45 percent debt and 55 percent common equity. The company has 20-year bonds outstanding with a 10 percent annual coupon that are trading at par. The company's tax rate is 35 percent. The risk-free rate is 7 percent. The market risk premium is 6 percent.
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
