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The following information pertains to Daves Inc. The firms bonds mature in 20 years and have a current yield to maturity of 8.00%. The companys
The following information pertains to Daves Inc. The firms bonds mature in 20 years and have a current yield to maturity of 8.00%. The companys tax rate is 40.0%. The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stocks beta is 1.20. The target debt/capitalization ratio is 35.0%. What is the WACC for the company?
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