Question
Company's equity beta before restructuring was 1.1. Risk-free rate is 1.18%, market risk premium is 6%. The company issued new bonds with 4% coupon, and
Company's equity beta before restructuring was 1.1. Risk-free rate is 1.18%, market risk premium is 6%. The company issued new bonds with 4% coupon, and distributed proceeds as dividends. The leverage ratio increased from 10% to 20%. Tax rate is 0.21. What is the new WACC? [Hint: unlever and re-lever beta using unlevered beta formula, enter your answer in %, with two decimal points precision]
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Conservation Of Tropical Rainforests A Review Of Financial And Strategic Solutions
Authors: Brian Joseph McFarland
1st Edition
3319632353, 3319632361, 9783319632353, 9783319632360
