Question
XYZ Inc. has $10 million in excess cash, a market capitalization of $300 million and a market value of debt of $110 million. Its cost
XYZ Inc. has $10 million in excess cash, a market capitalization of $300 million and a market value of debt of $110 million. Its cost of equity is 14% and its cost of debt is 5%. The corporate tax rate is 26%. Calculate the WACC for XYZ Inc. Express your answer in percent and round to two decimals (do not include the %-symbol in your answer).
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
