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6.67 pts A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 9.65%. The beta
6.67 pts A company's capital structure consists of 40% debt and 60% equity. The yield on this company's bonds is currently 9.65%. The beta of this company is 1.25, the risk-free rate is 4.5% and the expected return on the market is 12.5%. The tax rate of this company is 21%. What is the WACC for this company? O 11.75% O 9.68% O 12.35% 12.91% O 14.46%
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
