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Your firm is has equity of $2,610,000.00 and debt of $4,080,000.00. The firm has been estimated to have a beta of 1.40 and the expected
Your firm is has equity of $2,610,000.00 and debt of $4,080,000.00. The firm has been estimated to have a beta of 1.40 and the expected market risk premium (MRP) is 6.27% with the risk-free rate at 2.13%. The firm just recently issued bonds which traded at $967.14 on its issue date and they have a 10-year maturity (assume standard corporate bonds). The stated rate on the bonds was 3.50%. What is your firms weighted average cost of capital (WACC) if the tax rate is 17.00%? (enter your value as a percent (i.e. 20.5 for 20.5%) tolerance is 0.1)
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