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The industry average beta is 0.82, the risk free rate is 2%, and the market risk premium is 7%. The yield on the companys debt
The industry average beta is 0.82, the risk free rate is 2%, and the market risk premium is 7%. The yield on the companys debt is 5%, and the firm has a 35% marginal tax rate. The ratio of debt to total asset (debt plus equity) is 32%. Thus, the WACC is:
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