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Bombardier Inc has common stock trading at a price of $15, and a market capitalization of $8 billion. The firm also has preferred stock worth
- Bombardier Inc has common stock trading at a price of $15, and a market capitalization of $8 billion. The firm also has preferred stock worth a total of $2 billion, currently trading at $23 per share and paying a dividend of $2.75 per share. The firm's beta is 0.93, the risk-free rate is 3.2%, and the market risk premium is 7%. The firm has $12 billion of debt with a yield to maturity of 5%. If the firm's tax rate is 20%, what is Bombardier's WACC?A.4.12%
- B.8.56%
- C.7.3%
- D.7.57%
- E.6.8%
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
