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Below is some information for Marischen & Burkemper, Co. Assume the company's tax rate is 35%. Debt: 40,000 bonds outstanding, selling for $103 each; the
Below is some information for Marischen & Burkemper, Co. Assume the company's tax rate is 35%. Debt: 40,000 bonds outstanding, selling for $103 each; the yield to maturity is 6.72% Common Stock: 90,000 shares outstanding, selling for $57 per share; the beta is 1.10. Market: 14% expected return on the market and 6% risk-free rate. The WACC for the firm is 11.15% rect Answer 10.15% 7.60% 8.00% 12.56%
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