Question
The long-term debt of Terrasys Inc has a market value of $25 million. The company has 10 million shares of stock, and their current
The long-term debt of Terrasys Inc has a market value of $25 million. The company has 10 million shares of stock, and their current stock price per share is $5.00. The cost of debt is 8.00%, and the judgmental risk premium is 4.25%. What is the company's WACC if the tax rate is 40%?
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
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