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A firm is 60% financed by debt with a yield-to-maturity of 8.5%. The equity has a beta of 1.3, the market risk premium is 8.4%
A firm is 60% financed by debt with a yield-to-maturity of 8.5%. The equity has a beta of 1.3, the market risk premium is 8.4% and the risk-free rate is 3.8%. What is the firm's WACC if the tax rate is 21%? Select one: O a. 12.38% O b. 11.52% O c. 11.91% O d. 9.92%
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