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2) Walther Co. has a beta of.85. The market risk premium is 6.0% and the risk-free rate is 5.0%. The firm has a debt-to-equity ratio

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2) Walther Co. has a beta of.85. The market risk premium is 6.0% and the risk-free rate is 5.0%. The firm has a debt-to-equity ratio of 25 and a cost of debt of 9.0%. The applicable tax rate is 21%. a) What is the firm's unlevered beta? b) What is the firm's WACC? Now assume that the firm has a target debt-to-equity ratio of.50. c) What is the levered beta with the target D/E ratio? d) What is the WACC with the target D/E ratio

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