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Billick Brothers is estimating its WACC. The company has collected the following information: Its capital structure consists of 15 percent debt and 85 percent common
| Billick Brothers is estimating its WACC. The company has collected the following information: |
| Its capital structure consists of 15 percent debt and 85 percent common equity. |
| The company has 14-year bonds outstanding with a 8.9 percent annual coupon that are trading at $1,100. |
| The companys tax rate is 34 percent. |
| The risk-free rate is 5.7 percent. |
| The market risk premium is 1.3 percent. |
| The stocks beta is 1.8. |
| What is the companys WACC? |
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Passive Income The Passive Income Millionaire
Authors: Alexus Arellano
1st Edition
9814950882, 978-9814950886
