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Use the following information to compute the weighted average cost of capital (WACC) of GoGo Inc. Debt information: o Bonds will mature in 9 years.
Use the following information to compute the weighted average cost of capital (WACC) of GoGo Inc. Debt information: o Bonds will mature in 9 years. o The maturity value is $1,000. The coupon rate is 8%, with semiannual payments. The current bond price is $915. The beta of GoGo Inc. stock is 1.1 Risk-free rate is 4% Market return is 15% GoGo's capital structure is 55% equity and 45% debt. The tax rate is 21%. GoGo's WACC iST 12.20% 14.62% 13.32% 15.47%
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