Question
If the WACC of a company is 11.80%, the risk free is 5%, market risk premium is 10% with a beta for the stock
If the WACC of a company is 11.80%, the risk free is 5%, market risk premium is 10% with a beta for the stock of 1 and the overall cost of debt for the company is 7%. How much is the proportion of D/(D+E) and E/(D+E) of the company respectively? Consider no taxes
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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