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Taylor Company's stock price is $35 and the firm has 33 million shares outstanding. The stock's expected rate of return according to the CAPM is
Taylor Company's stock price is $35 and the firm has 33 million shares outstanding. The stock's expected rate of return according to the CAPM is 12.0%. The company also has outstanding bonds bonds with a yield-to-maturity of 8.0% and a total par value of $672 million, The bonds' market price is 101.3% of par value. The firm's tax rate is 18%. If there are no other classes of securities, what is the firm's WACC? Enter youranswer as a decimal arid show four decimal places, For example, if your answer is 9.25%, enter 0925
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