Question
Lowrey Company has a current share price of $50, and a market capitalization of $7 billion. The firm's beta is 0.27, the risk-free rate is
Lowrey Company has a current share price of $50, and a market capitalization of $7 billion. The firm's beta is 0.27, the risk-free rate is 2.4%, and the market risk premium is 6%. The firm has $4 billion of debt with a yield to maturity of 8%. If the firm's tax rate is 35%, what is Lowrey Company's WACC?
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Finance For A Better World
Authors: Henri-Claude De Bettignies, F. Lépineux
2009th Edition
0230551300, 978-0230551305
