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ABC is a private firm with a leverage ratio of 0.25. The interest rate on ABC's debt is 5%. Given the following information, find ABC's
"ABC is a private firm with a leverage ratio of 0.25. The interest rate on ABC's debt is 5%. Given the following information, find ABC's WACC. There are 2 publicly traded firms in this industry. The first, CDB, has an equity beta of 1.6, borrowing rate of 4%, and a leverage ratio of 0.20. The second firm, DEG, has no debt and its beta is 1.1. The tax rate is 30%, the risk-free rate is 2%, and the market risk premium is 6%." 07.32% 0 7.75% 8.62% 8.82% O 7.43% "ABC is a private firm with a leverage ratio of 0.25. The interest rate on ABC's debt is 5%. Given the following information, find ABC's WACC. There are 2 publicly traded firms in this industry. The first, CDB, has an equity beta of 1.6, borrowing rate of 4%, and a leverage ratio of 0.20. The second firm, DEG, has no debt and its beta is 1.1. The tax rate is 30%, the risk-free rate is 2%, and the market risk premium is 6%." 07.32% 0 7.75% 8.62% 8.82% O 7.43%
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