Question
Firm A has $128 of outstanding debt and a market capital of $128. The debt costs 0.09/ year. This firm has an equity beta of
Firm A has $128 of outstanding debt and a market capital of $128. The debt costs 0.09/ year. This firm has an equity beta of 2.5. The market risk premium is 0.08. The risk-free rate is 0.02. Firm A is in the 0.24 tax bracket. What is Firm A's WACC?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
