Question
Bob's firm has $145 of outstanding debt and a market cap of $157. The debt costs 0.05 per year. The firm has an equity beta
Bob's firm has $145 of outstanding debt and a market cap of $157. The debt costs 0.05 per year. The firm has an equity beta of 2.5. The market risk premium is 0.08. The risk free rate is 0.02. Bob's firm is in the .22 tax bracket. What is the Bob's WACC?
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Principles Of Sustainable Finance
Authors: Dirk Schoenmaker, Willem Schramade
1st Edition
0198826605, 978-0198826606
