Question
Assume a firm has 60% in equity capital and 40% in debt. The firm's beta is 1.2 and the risk free rate is 3% while
Assume a firm has 60% in equity capital and 40% in debt. The firm's beta is 1.2 and the risk free rate is 3% while the market premium is 6%. The firm's cost of debt is 5% and the firm has amarginal tax rate of 20%. What is the firm's WACC?
| a. | 6.58% | |
| b. | 7.72% | |
| c. | 8.12% | |
| d. | 8.48% |
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Financial Accounting A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
