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A firm has $23M in debt and $93M in equity. Its cost of debt is 5.1% and tax rate of 23%. It's estimated to have
A firm has $23M in debt and $93M in equity. Its cost of debt is 5.1% and tax rate of 23%. It's estimated to have a Beta of 0.6. Current market conditions suggest that the risk-free rate is 1.9% while the expected return on the market portfolio is 8.7% Estimate the firm's WACC. Round your answer to the nearest basis point (0.0001)
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
