Question
Ballmont Inc. is a utility company operating in a sector where the average debt to equity ratio and beta are 1 and 0.9 respectively. The
Ballmont Inc. is a utility company operating in a sector where the average debt to equity ratio and beta are 1 and 0.9 respectively. The company issued a 15 years bond 10 years ago with a coupon rate of 6% and this bond currently trades at 108.9% of face value. The risk free rate and market risk premium are 1% and 11.5% respectively. The relevant tax rate is 25%. Assess the company's WACC?
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States And The Reemergence Of Global Finance
Authors: Eric Helleiner
1st Edition
0801428599, 978-0801428593
