Transcribed image text: 3. Currently, rRF (the market risk free rate) = 4.00%; RPM (market risk premium)=5.00%;

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Transcribed image text: 3. Currently, rRF (the market risk free rate) = 4.00%; RPM (market risk premium)=5.00%; Schadler Systems' beta is 1.5. The firm's bonds mature in 25 years, have an 8.00% coupon (annual payment), a par value of $1,000, and a market price of $1,055.7374. The tax rate is 40%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC? a. 8.35% 1 b. 8.70% c. 9.06% d. 9.42% e. 9.80%

Posted Date: Jul 03, 2024 11:43 AM

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Transcribed image text: 3. Currently, rRF (the market risk free rate) = 4.00%; RPM (market risk premium)=5.00%;

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