Question
Candy Land Corp. has a WACC of 12.17%. The companys equity beta is 1.3, and its semi-annual coupon bonds have a yield-to-maturity of 8.8% (APR,
Candy Land Corp. has a WACC of 12.17%. The companys equity beta is 1.3, and its semi-annual coupon bonds have a yield-to-maturity of 8.8% (APR, semi-annually compounded). The risk-free rate is 4%, the expected return on the market portfolio is 11.5%, and the tax rate is 35%. What is Candy Lands debt-to-equity (D/E) ratio?
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Advances In Entrepreneurial Finance
Authors: Rassoul Yazdipour
2011th Edition
148998190X, 978-1489981905
