Question
Ho-ho-ho has a target debtequity ratio of 0.63. (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 debtequity ratio of 0.63. (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 9 percent. Its cost of equity is 16 percent. The corporate income tax rate is 34 percent. Calculate the WACC for this company. |
Multiple Choice
9.66%
9.83%
12.11%
12.72%
11.51%
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
