Problem 13-2 WACC (LO1) Here is some information about Stokenchurch Incorporated: Beta of common stock =...
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Problem 13-2 WACC (LO1) Here is some information about Stokenchurch Incorporated: Beta of common stock = 1.8 Treasury bill rate = 4% Market risk premium = 7.1% Yield to maturity on long-term debt = 6% Book value of equity = $400 million Market value of equity = $800 million Long-term debt outstanding = $800 million Corporate tax rate = 21% What is the company's WACC? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal pla WACC % Problem 13-2 WACC (LO1) Here is some information about Stokenchurch Incorporated: Beta of common stock = 1.8 Treasury bill rate = 4% Market risk premium = 7.1% Yield to maturity on long-term debt = 6% Book value of equity = $400 million Market value of equity = $800 million Long-term debt outstanding = $800 million Corporate tax rate = 21% What is the company's WACC? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal pla WACC %
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