Question
A firm has a beta of 1.3 and a debt-to-equity ratio of .4. The market rate of return is 11.6 percent, the tax rate is
A firm has a beta of 1.3 and a debt-to-equity ratio of .4. The market rate of return is 11.6 percent, the tax rate is 32 percent, and the risk-free rate is 3.3 percent. The pretax cost of debt is 7.2 percent. What is the firm's WACC?
| 11.46% | |
| 8.90% | |
| 10.41% | |
| 9.96% | |
| 12.12% |
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
