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Apple Inc. currently issues bonds that yield 9%. Its stock has a beta of 1.5, and the return on S&P 500 stock index is about
Apple Inc. currently issues bonds that yield 9%. Its stock has a beta of 1.5, and the return on S&P 500 stock index is about 10%. T-bill rates are 3%. Apples target capital structure is 30% debt and 70% equity. If Apple is in the 35 percent tax bracket, calculate its WACC (weighted average cost of capital)?
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