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A company is 34% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the

A company is 34% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the company's common stock is 0.65. What is the after-tax WACC, assuming that the company pays tax at a 30% rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. After-tax WACC 11.62 X %

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Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Berk, DeMarzo, Harford

2nd edition

978-0132148238

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