Question
A firm's cost of equity is 12% and the average YTM for its outstanding bonds is 7.5%. The firm's long-term target capital structure is
A firm's cost of equity is 12% and the average YTM for its outstanding bonds is 7.5%. The firm's long-term target capital structure is 70% equity and 30% debt. The marginal corporate income tax rate is 35% / What is the firm's WACC? Answer either as a percent (x.xx%) or carry answer out to four decimal places (.xxxx).
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
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