Question
Question 7 XYZ Inc. has $10 million in excess cash, a market capitalization of $300 million and a market value of debt of $110 million.
Question 7
XYZ Inc. has $10 million in excess cash, a market capitalization of $300 million and a market value of debt of $110 million. Its cost of equity is 10% and its cost of debt is 4%. The corporate tax rate is 32%. Calculate the WACC for XYZ Inc. Express your answer in percent and round to two decimals (do not include the %-symbol in your answer).
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Property Finance
Authors: Giacomo Morri, Antonio Mazza
1st Edition
1118764404, 978-1118764404
