Question
The debt to equity ratio is 1.26 for your company. The beta is 0.87. The excess market return is 6.7% and the risk-free rate is
The debt to equity ratio is 1.26 for your company. The beta is 0.87. The excess market return is 6.7% and the risk-free rate is 1.56%. The bonds of your company have a 4.32% coupon rate, but a yield to maturity of 5.67%. Your tax rate is 21%. What is the WACC for your company?
Multiple Choice
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5.77%
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7.87%
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6.52%
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8.13%
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6.98%
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
