Question
1. If the risk-free rate is 1.1% and the expected market return is 6.4%, what is the WACC of the company with the following characteristics?
1. If the risk-free rate is 1.1% and the expected market return is 6.4%, what is the WACC of the company with the following characteristics? Answer in percent, rounded to two decimal places. Market value of debt: $693 million Market price of each share: $12 Number of shares outstanding: 89 million Tax rate: 16.3% The average yield on current debt (pre-tax cost of debt): 5.5% Beta: 1.0
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
