Question
A firm is 30% financed by debt with a yield-to-maturity of 8%. The equity has a beta of 1.2, the market risk premium is 8%
A firm is 30% financed by debt with a yield-to-maturity of 8%. The equity has a beta of 1.2, the market risk premium is 8% and the risk-free rate is 3%. What is the firm's WACC if the tax rate is 35%?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
