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Beta of common stock = 1.9 Treasury bill rate = 4% Market risk premium = 7.2% Yield to maturity on long-term debt = 5% Book
Beta of common stock = 1.9
Treasury bill rate = 4%
Market risk premium = 7.2%
Yield to maturity on long-term debt = 5%
Book value of equity = $410 million
Market value of equity = $820 million
Long-term debt outstanding = $820 million
Corporate tax rate = 21%
What is the companys WACC?
I explicitly would like to know what numbers to use and where (within a formula). Thank you!
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