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Using the information below, calculate the firms WACC. Target capital structure is 30% debt and 70% equity Long-term government bonds yielding 3% Company pays 250

Using the information below, calculate the firms WACC.

  • Target capital structure is 30% debt and 70% equity
  • Long-term government bonds yielding 3%
  • Company pays 250 bp above comparable government bonds for its debt
  • Tax Rate is 25%
  • Market Risk Premium is 6%
  • Levered Beta is 1.17

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