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You are estimating a company's weighted average cost of capital ( WACC ) . The company has a debt - to - equity ratio, D
You are estimating a company's weighted average cost of capital WACC The company has a debttoequity ratio, DE of which means that the company has the same amount of debt and equity values DE D E The required rate of return on the company's stock is The yield to maturity of the company's outstanding bonds is The company is subject to a income tax rate. What is the company's WACC in percentage
Hint: You can assume any value for the equity or debt, but not both For example, you can set the equity value E to determine the value for D and V
Note: Write your answer in terms do not round For example, write instead of
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