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Question 17 (1 point) Firm Z has outstanding bonds with a 7% yield to maturity. The firm's managers believe that they can raise new debt
Question 17 (1 point) Firm Z has outstanding bonds with a 7% yield to maturity. The firm's managers believe that they can raise new debt at a similar rate. The firm's tax-rate is 30%. Also, the firm's beta is 1.5, the return on the market is 8% and the risk-free rate is 3XH the firm's target capital structure is evenly split between debt and common equity but no preferred stock, what is the firm's weighted average cost of capital (WACC)? OA) 5.45% OB) 6.20% OC) 7.70% OD) 8.80% Page 17 of 39 OE) 9,55% Not Piage Previous Page MacBook Air
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