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the correct answer should be option (b) ! can you help me to get this answer 11- XYZ Corp. has beta 1.8 and market value
the correct answer should be option (b) ! can you help me to get this answer
11- XYZ Corp. has beta 1.8 and market value of equity $530 million. The required return on XYZ 's debt is 7.8%. The market value of that debt is $250 million. The risk-free rate is 6% and the expected return on the market is 9.9%. The tax rate is 40%. What is XYZ's WACC? r=6+1.8(9.96)=13.02 a) 9.00% (b) 10.35% c) 11.27% d) 12.36% e) None of the above 1134 Step by Step Solution
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