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Find the WACC for Private Company B based on the following information: Public Company A Beta 1.11 Company A Debt/Total Capital 50% Private Company B
Find the WACC for Private Company B based on the following information:
| Public Company A | |||
| Beta | 1.11 | ||
| Company A Debt/Total Capital | 50% | ||
| Private Company B | |||
| Debt/Total Capital | 65% | ||
| After-tax Cost of Debt (market) | 5.000% | ||
| Market information | |||
| Risk free rate | 3.700% | ||
| Risk premium | 6.500% | ||
| Marginal tax rate | 25% | ||
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
