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Quick, Inc. has 50 bonds outstanding with a market value of $1,000 each and with a yield to maturity of 6.8% and an annual coupon
Quick, Inc. has 50 bonds outstanding with a market value of $1,000 each and with a yield to maturity of 6.8% and an annual coupon rate of 6%. Tax rate is 17%. The firm also has 5,000 shares of common stock outstanding. The stock has a beta of 0.9 and sells for $10 a share. Risk-free rate is 2% and the market risk premium is 5%. What is the firm's WACC?
Question 3 options:
7.18%
5.60%
6.07%
4.20%
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