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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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