Question
The companys beta is 0.95, the average return on the market index is 15%, and the risk-free return is 2%. The company has a target
The companys beta is 0.95, the average return on the market index is 15%, and the risk-free return is 2%. The company has a target capital structure of Debt-to-Equity = 1/3. The yield to maturity on the companys bonds is 4% and it is in a 21% income tax bracket. Find WACC.
| a. | 10.90% | |
| b. | 11.55% | |
| c. | 10.62% | |
| d. | 11.76% |
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ISE Real Estate Finance And Investments
Authors: Jeffrey Fisher William B. Brueggeman
17th International Edition
1264892888, 9781264892884
