Question
Medusa Inc is trying to estimate its WACC. It has gathered the following data. - Capital structure is 40% debt and 60% equity - Debt
Medusa Inc is trying to estimate its WACC. It has gathered the following data. - Capital structure is 40% debt and 60% equity
- Debt consists of 22 year bonds with a 9% rate.
- Tax rate is 40%
- Risk free rate is 5.5%
- Market risk premium is 5%
- Beta is 1.4
What is their WACC?
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Computational Finance And Its Applications
Authors: C. A. Brebbia, M. Costantino
1st Edition
1853127094, 978-1853127090
