Question
A company is 30% financed with bonds issued and 70% with equity. The YTM of bond issued is 5%. Treasury bill rate of return is
A company is 30% financed with bonds issued and 70% with equity. The YTM of bond issued is 5%. Treasury bill rate of return is 2%. Government bond rate of return is 4%. Expected market return is 10%. Companys beta is 1.2. Assuming corporate tax rate of 35% what is the after-tax WACC?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
