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Consider the following information for Barrymore Corporation. Debt: $68,000,000 book value outstanding. The debt is trading at 89% of book value. The yield to maturity

Consider the following information for Barrymore Corporation.

  • Debt: $68,000,000 book value outstanding. The debt is trading at 89% of book value. The yield to maturity is 11%.
  • Equity: 1,800,000 shares selling at $35 per share. Assume the expected rate of return on Barrymores stock is 20%.
  • Taxes: Barrymores marginal tax rate is Tc = 0.21.

Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

weighted-average cost of capital (WACC)=?

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