Question
Golden Eagle has 1,250 bonds outstanding with a market value of $980 each. The pretax cost of debt is 7.2 percent. The firm also has
Golden Eagle has 1,250 bonds outstanding with a market value of $980 each. The pretax cost of debt is 7.2 percent. The firm also has 46,000 shares of common stock outstanding at a price per share of $32 and a beta of 1.21. The risk-free rate is 2.4 percent, the market risk premium is 7.3 percent, and the tax rate is 35 percent. What is the company's WACC?
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
