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A company has a target debt-equity ratio of 0.54. (Hint if you're not sure what to do about debt-equity ratio, watch my YouTube video (https://youtu
A company has a target debt-equity ratio of 0.54. (Hint if you're not sure what to do about "debt-equity ratio", watch my YouTube video (https://youtu be BAOMOGN90 on that topic! It is also posted in "Step 6" of this week's folder on Blackboard) The yield to maturty on its bonds is 10 percent. Its cost of equity is 20 percent The corporate income tax rate is 32 percent Calculate the WACC for this company. Multiple Choice 16.14% o 14.6% 15.37% 11.43% O 12.87%
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