Question
Wayne enterprises is looking a new business venture. The industry average beta is 0.82, the risk free rate is 2%, and the market risk premium
Wayne enterprises is looking a new business venture. The industry average beta is 0.82, the risk free rate is 2%, and the market risk premium is 7%. The yield on the company's debt is 5%, and the firm has a 35% marginal tax rate. The debt to (total asset) value ratio is 32%.
Thus, the WACC is:
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To calculate the Weighted Average Cost of Capital WACC for Wayne Enterprises you can use the followi...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
