Question
4. XYZ Inc. has $10 million of equity and $5 million of bonds with YTM of 5 percent per year. Beta is 2, market return
4. XYZ Inc. has $10 million of equity and $5 million of bonds with YTM of 5 percent per year. Beta is 2, market return is 12 percent, tax rate is 30 percent and the risk-free rate is 3 percent. What is the WACC for XYZ Inc?
Question 4 options:
17.44%
12.25%
15.16%
19.16%
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
