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Suppose you are analyzing a company with the following characteristics. If the risk- free is 3% and the expected market risk premium is 6%,
Suppose you are analyzing a company with the following characteristics. If the risk- free is 3% and the expected market risk premium is 6%, what is this company's WACC? Answer in percent showing two decimal places. Market value of debt: $500 million Market price of each share: $20 Number of shares outstanding: 75 million Tax rate: 18% The average yield on current debt (pre-tax cost of debt): 4% Beta: 1.5
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