Stock's beta Market Risk Premium Current Yield To Maturity on Treasury Bonds 1.51 4.3% 3.6% Percent of target capital structure in Debt Spread on debt as compared to Treasury Bonds Tax rate 37% 2.1% 40% Negative news about the firm hits the market! Result #1. The spread widens by this amount: Result #2. The stock's beta has gone up this amount: 3.4% 0.40 The negative news caused WACC to go up how much 1 A Between 1.00% and 1.70% 2 B Between 1.70% and 1.90% 3 C Between 1.90% and 2.10% 4 D Between 2.10% and 2.30% 5 6 28 Stock's beta Market Risk Premium Current Yield To Maturity on Treasury Bonds 1.51 4.3% 3.6% Percent of target capital structure in Debt Spread on debt as compared to Treasury Bonds Tax rate 37% 2.1% 40% Negative news about the firm hits the market! Result #1. The spread widens by this amount: Result #2. The stock's beta has gone up this amount: 3.4% 0.40 The negative news caused WACC to go up how much 1 A Between 1.00% and 1.70% 2 B Between 1.70% and 1.90% 3 C Between 1.90% and 2.10% 4 D Between 2.10% and 2.30% 5 6 28