Previous Page Next Page Page 12 of 31 Question 12 (2 points) C-Urchin Limited, an unlevered firm has an EBIT of $450,000 that it expects it will earn forever, and it pays all of its earnings as dividends to shareholders (i.e. no growth). The firm has a corporate tax rate of 40% and has a beta of .90. In the market, you observe that Government T-bills are being sold to yield 4% and the S&P/TSX Composite Index is expected to yield 10%. Assuming a world of taxes and a cost for the risk of default. What is the WACC for firm? O 13% 04% None of the answers are correct 09.4% O 10% Previous Page Next Page Page 12 of 31