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Suppose the ABC company has a D/E ratio of 0.6. The risk-free rate is 3% and the market risk premium is 8%. Calculate the firms

Suppose the ABC company has a D/E ratio of 0.6. The risk-free rate is 3% and the market risk premium is 8%. Calculate the firms WACC assuming a 30% tax rate, a cost of debt of 5% and an unleveraged beta of the industry (asset beta) of 1.5 (use the Hamada formula).

A. 8,44%

B. 6,88%

C. 11,45%

D. 13,84%

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