Answered step by step
Verified Expert Solution
Question
1 Approved Answer
T-Bond 1.70% AA Bond rate 3.50% Equity Preminum 6% Beta 0.8 Debt 50 Equity 200 Total 250 Tax rate 34% The WACC of this firm
T-Bond | 1.70% |
AA Bond rate | 3.50% |
|
|
Equity Preminum | 6% |
Beta | 0.8 |
|
|
Debt | 50 |
Equity | 200 |
Total | 250 |
|
|
Tax rate | 34% |
The WACC of this firm is
A. | 7.21%
| |
B. | 5.28%
| |
C. | 5.66%
| |
D. | 4.30%
| |
E. | 6.51%
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started