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XYZ Corp. has equity beta 1.8 and market value of equity $230 million. The required return on XYZ's debt is 6.8%. The maket value of
XYZ Corp. has equity beta 1.8 and market value of equity $230 million. The required return on XYZ's debt is 6.8%. The maket value of that debt is $250 million and the book value is $240 million. The risk-free rate is 4% and the expected return on the market is 9.9%; the tax rate of this company is 40%. What is XYZ's WACC ?
a. 8.68
b. 9.14
c.10.30
d. 7.98
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