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Use the Information below to answer the next two questions: Company XYZ is a privately-held micro-cap firm . It has three peer (comparable) firms which
Use the Information below to answer the next two questions: Company XYZ is a privately-held micro-cap firm . It has three peer (comparable) firms which are publicly listed. The information about the peer firms is as follows: If marginal tax rate is 30%, what is the implied levered Beta of XYZ company? Company XYZ has only one bond traded in the secondary market with a YTM of 8%. What is the WACC for company XYZ? Assume that risk free rate (rf) is 5% and market return(rm) is 12%. Size premium for micro-cap firms is 4.08%. Use the Information below to answer the next two questions: Company XYZ is a privately-held micro-cap firm . It has three peer (comparable) firms which are publicly listed. The information about the peer firms is as follows: If marginal tax rate is 30%, what is the implied levered Beta of XYZ company? Company XYZ has only one bond traded in the secondary market with a YTM of 8%. What is the WACC for company XYZ? Assume that risk free rate (rf) is 5% and market return(rm) is 12%. Size premium for micro-cap firms is 4.08%
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