Question
A firm has a D/E ratio of .30. Its debt is rated AA with a current yield of 4.375%. The rate for 10-year Treasuries is
A firm has a D/E ratio of .30. Its debt is rated AA with a current yield of 4.375%. The rate for 10-year Treasuries is 2.9%, and the market risk premium is 650 basis points over the risk-free rate. Finally, it has a beta of 1.10. What is the firm's WACC if the firm has a marginal tax rate of 30%? (please show the calculations)
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Property Finance
Authors: Giacomo Morri, Antonio Mazza
1st Edition
1118764404, 978-1118764404
