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Ho-ho-ho has a target debt-equity ratio of 0.5. (Hint: if you're not sure what to do about debt-equity ratio watch my YouTube video on that
Ho-ho-ho has a target debt-equity ratio of 0.5. (Hint: if you're not sure what to do about "debt-equity ratio" watch my YouTube video on that topic) The yield to maturity on its bonds is 8 percent. Its cost of equity is 16 percent. The corporate income tax rate is 33 percent. Calculate the WACC for this company. Multiple Choice 10.68% 8.91% 12.45% 13.08% 11.83%
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