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Boring Company has a beta of 1.30. The treasury bill rate is 4.0 percent and the market risk premium is expected to be 6.0 percent.
Boring Company has a beta of 1.30. The treasury bill rate is 4.0 percent and the market risk premium is expected to be 6.0 percent. The book value of Boring's equity is $1.50 billion. Boring has $900 million in debt with a 5.0 percent yield, $200 million in cash, and a market capitalization of $2.5 billion. Its tax rate is 20%. What is Boring's WACC? 6.2% 9.2% O 10.1% O 12.5% O 13.3% 13.6%
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