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Based on three of its competitors, find WACC for Excelsior Knives Comp A Comp B Comp C Equity beta 1.1 1.5 1.8 tax rate 20%
Based on three of its competitors, find WACC for Excelsior Knives
| Comp A | Comp B | Comp C | |
| Equity beta | 1.1 | 1.5 | 1.8 |
| tax rate | 20% | 30% | 25% |
| Debt (M) | 120 | 200 | 60 |
| Equity (M) | 300 | 200 | 90 |
| Excelsior Knives | |
| tax rate | 21% |
| Debt (M) | 100 |
| Equity (M) | 60 |
| Cost of debt | 5.00% |
| Market conditions | |
| risk-free rate | 2.50% |
| MRP | 4.00% |
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
