Question
Cookie Corp. has $1,666 in debt outstanding and $2,114 in common stock (and no preferred stock). Its marginal tax rate is 30%. Cookie's bonds have
Cookie Corp. has $1,666 in debt outstanding and $2,114 in common stock (and no preferred stock). Its marginal tax rate is 30%. Cookie's bonds have a YTM of 6.5%. The estimated risk premium between the company's stocks and bonds is 5%. The company's W.A.C.C. is _____%.
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Financial Liberalization And The Reconstruction Of State Market Relations
Authors: Robert B. Packer
1st Edition
1138488518, 978-1138488519
