Question
The XYZ Co. has total assets of $20,000 and total debt of $8,000. The yield-to-maturity on its bonds is 9%. The cost of capital with
The XYZ Co. has total assets of $20,000 and total debt of $8,000. The yield-to-maturity on its bonds is 9%. The cost of capital with no debt is 15%. The tax rate is 34%. What is the WACC?
A)8.64%
B)10.58%
C)10.88%
D)11.39%
E)12.96%
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Get StartedRecommended Textbook for
Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
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