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A company has a target debt-equity ratio of 0.67. (Hint: if you're not sure what to do about debt-equity ratio, watch my YouTube video (https://youtu.be/BAipMtb6N9k)
A company has a target debt-equity ratio of 0.67. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video (https://youtu.be/BAipMtb6N9k) on that topic! It is also posted in "Step 6" of this week's folder on Blackboard.) The yield to maturity on its bonds is 10 percent. Its cost of equity is 17 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice 12.91% 12.26% 13.55% 10.17% 10.89%
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