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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
