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DYEL Corp has a beta of 2.3 and an average YTM on its bonds of 6.3%. The company is 50% debt and 50% equity financed.
DYEL Corp has a beta of 2.3 and an average YTM on its bonds of 6.3%. The company is 50% debt and 50% equity financed. The effective tax-rate of DYEL is 30%. Finally, the current estimate of the risk-free rate is 1% and the market risk premium is 6%. What is the WACC of DYEL Corp?
10.55% | ||
9.61% | ||
14.80% | ||
6.30% |
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