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?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
