Question
Unix Limited's equity beta is 1.2. The market risk premium is 7 percent and the risk-free rate is 10 percent. Unix has a debt
Unix Limited's equity beta is 1.2. The market risk premium is 7 percent and the risk-free rate is 10 percent. Unix has a debt equity ratio of 2:3. Its pre-tax cost of debt is 14 percent. If the tax rate is 35 percent, what is the WACC?
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