Question
7) Glassmakers has the below characteristics. The premerger debt is $5, the premerger equity is $10. The risk free rate is 6%. The premerger beta
7) Glassmakers has the below characteristics. The premerger debt is $5, the premerger equity is $10. The risk free rate is 6%. The premerger beta is 1.36. The tax rate is 40%. The cost of debt premerger is 11%. The expected market rate of return is 10%. What is Glassmakers' pre-merger WACC?
| 9.02% | ||
| 9.50% | ||
| 9.83% | ||
| 10.01% | ||
| 11.29% |
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Finance For Normal People
Authors: Meir Statman
1st Edition
019062647X, 978-0190626471
