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Suppose SnowWhite's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. SnowWhite has
Suppose SnowWhite's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. SnowWhite has equity with a market value of $1 million and debt with a market value of $ 0.45 million. The cost of debt is 7.6 percent. What is the WACC if the tax rate is 23 percent and all interest is tax deductible?
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