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Question 5 1 pts Dittmer Inc. has the following information. (1) The firm's semiannual bonds mature in 20 years which were issued 5 years ago,
Question 5 1 pts Dittmer Inc. has the following information. (1) The firm's semiannual bonds mature in 20 years which were issued 5 years ago, have an 8.00% coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 2.0%, the market risk premium is 6.5%, and the stock's beta is 1.07. (4) The target capital structure consists of 31% debt and the balance is common equity. Dittmer's WACC is %. Answer in percentage, rounded to two decimal places. Question 6 1 pts Suppose a company uses only debt (in the form of loans) and common equity to finance its capital budget. Company estimates that its WACC is 11%. The capital structure consists of 34% debt. The loan is charged at LIBOR plus 69 basis points. LIBOR is currently 8.25%. The tax rate is 20%. Risk free rate is = 3.5% and the MRP is 8%. What is the beta of the company? Round your answer to two decimal places
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