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Upton Umbrellas has a cost of equity of 11.3 percent, the YTM on the company's bonds is 5.9 percent, and the tax rate is 40
Upton Umbrellas has a cost of equity of 11.3 percent, the YTM on the company's bonds is 5.9 percent, and the tax rate is 40 percent. The company's bonds sell for 93.3 percent of par. The debt has a book value of $399,000 and total assets have a book value of $949,000. If the market-to-book ratio is 2.65 times, what is the company's WACC?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
