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The table below shows a book balance sheet for the Wishing Well Motel chain. The company's long - term debt is secured by its real
The table below shows a book balance sheet for the Wishing Well Motel chain. The company's longterm debt is secured by its real
estate assets, but it also uses shortterm bank loans as a permanent source of financing. It pays interest on the bank debt and
interest on the secured debt. Wishing Well has million shares of stock outstanding, trading at $ per share. The expected return on
Wishing Well's common stock is Table figures in $ millions.
Calculate Wishing Well's WACC. Assume that the book and market values of Wishing Well's debt are the same. The marginal tax rate is
Do not round intermediate calculations. Enter your answer as a percent rounded to decimal place.
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