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Question 40 2.5 pts Company Clax has $500 million total assets of which 200 million is financed by debt at 10% APR and the rest
Question 40 2.5 pts Company Clax has $500 million total assets of which 200 million is financed by debt at 10% APR and the rest by common stocks. The Beta of the company is 1, the risk-free rate is 3% and the market rate is 10%. The company is in the 30% tax bracket. What is the WACC for Clax? 17% 10.6% O 7% 8.8%
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