Question
Joyner Ltd has an average market cost of borrowing of 6% per year and an equity beta of 1.2. Joyner has a consistent ratio of
Joyner Ltd has an average market cost of borrowing of 6% per year and an equity beta of 1.2. Joyner has a consistent ratio of debt to equity of 2:1 and a tax rate of 35%. The expected return on the market portfolio is 20% and the expected risk-free rate is 3%. Calculate the WACC for Joyner Ltd.
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Corporate Finance The Core
Authors: Jonathan Berk, Peter DeMarzo
4th Global Edition
1292158336, 9781292158334
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