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Question 6 (1 point) Saved Sun Rise Co. has 2 million shares of stock outstanding. The stock currently sells for $20 per share. The firm's
Question 6 (1 point) Saved Sun Rise Co. has 2 million shares of stock outstanding. The stock currently sells for $20 per share. The firm's debt is publicly traded and was recently quoted at 110 percent of face value. It has a total face value of $9 million, and it is currently priced to yield 9 percent. The risk-free rate is 3 percent, and the market return is 11 percent. You've estimated that Sun Rise has a beta of 1.5. If the corporate tax rate is 21 percent, what is the WACC of Sun Rise Co.? 12.52% 13.43% 15% 17.04% 9%
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