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D Question 10 4 pts Action Inc. has a target debt-to-equity ratio of 2/3. The firm has no preferred stock. The firm's bonds have a
D Question 10 4 pts Action Inc. has a target debt-to-equity ratio of 2/3. The firm has no preferred stock. The firm's bonds have a coupon rate of 9% and YTM of 8.5%, and the firm is subject to a 30% corporate tax rate. The firm has common stock with a beta of 1.54. The risk- free rate on Treasury bills is 4% and the expected market risk premium is 10%. What is the minimum after-tax rate of return that Action must earn on its investments
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