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The total book value of WTC's equity is $9 million, and book value per share is $24. The stock has a market-to-book ratio of
The total book value of WTC's equity is $9 million, and book value per share is $24. The stock has a market-to-book ratio of 1.5, and the cost of equity is 14%. The firm's bonds have a face value of $6 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 5%, and the firm's tax rate is 21%. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC %
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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
3rd edition
978-013611539, 136115276, 013611539X, 978-0136115274
