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You decide that the CAPM's estimate of your required return is more accurate than the discount dividend model's or the Fama-French-Carhart's estimate. You currently have
You decide that the CAPM's estimate of your required return is more accurate than the discount dividend model's or the Fama-French-Carhart's estimate. You currently have 10,000 outstanding bonds and 800,000 shares outstanding. Assuming the corporate tax-rate is 35%, what is your company's WACC? (cost of equity capital using the CAPM= 10.4%)
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